Healthcare AI and quantum computing startups demonstrate India’s growing prowess in frontier technologies with significant early-stage investments
In a strong signal of continued investor confidence in Indian-founded startups, multiple technology companies have secured substantial early-stage funding. Notably, Confido Health has raised $3 million in a seed round, while Pune-based quantum technology startup Quanfluence has secured $2 million, highlighting India’s emerging strength in deep tech innovation.
Confido Health, an AI-focused healthtech startup founded by Indian entrepreneurs Chetan Reddy and Vichar Shroff, has successfully closed its $3 million seed funding round led by Together Fund. The round saw participation from notable investors including MedMountain Ventures, Rebellion VC, DeVC, Operators Studio, and strategic healthcare operators, building upon their previous pre-seed round led by Momentum Capital.
“The US healthcare industry spends roughly USD 1 trillion on staffing, yet there is a shortage of 30 million workers in the country,” explains Chetan Reddy, CEO of Confido Health. “That is a sharp problem that we have identified, and we are building a software product, what we call artificial intelligence digital workers, to fill this staffing gap. Whenever there is a need for workers, we plug in our digital workers who will perform those tasks related to administrative activities efficiently.”
The startup has developed an innovative platform that leverages AI to address critical healthcare staffing challenges. Their digital workers manage essential tasks including appointment scheduling, insurance verification, and care coordination. A key differentiator is their rapid integration capability – the system can be deployed and integrated with existing healthcare infrastructure in less than five minutes through a no-code approach.
Confido’s technology stands out for its sophisticated handling of unstructured data across multiple systems while maintaining HIPAA compliance. Unlike many AI solutions that rely on public datasets, their digital workers are validated using real-world data, enabling them to engage with patients in multiple languages and handle multiple tasks simultaneously. The platform currently serves 15 customers across more than 50 locations, reaching 50,000 patients monthly.
In parallel, Pune-based Quanfluence has secured $2 million in seed funding led by Pi Ventures, with participation from Golden Sparrow and Reena Dayal, founder of the Quantum Ecosystems and Technology Council of India (QETCI). The investment marks a significant milestone for India’s quantum computing sector.
Founded in 2021 and incubated at the prestigious IIT Madras Incubation Center, Quanfluence specializes in photonic quantum technology, utilizing light waves for computational processes. The startup’s innovative approach focuses on developing scalable, fault-tolerant quantum systems with practical applications in financial optimization, logistics, and delivery route planning.
“India’s deep tech ecosystem is maturing rapidly, and these funding rounds demonstrate global investors’ recognition of Indian innovation in frontier technologies,” says Manish Singhal, founding partner at Pi Ventures. “The combination of AI and quantum computing startups securing funding shows we’re building expertise across multiple advanced technology domains.”
These investments reflect a broader trend in India’s startup ecosystem, where deep tech companies are increasingly attracting significant early-stage funding. The success of these startups is expected to catalyze further innovation and attract more talent to India’s technology sector.
Both companies have outlined clear plans for their fresh capital. Confido Health aims to enhance its AI technology stack and expand into new medical specialties including surgery, orthopedics, dental, and pediatrics. Meanwhile, Quanfluence will focus on accelerating the development of its flagship quantum computing systems and enhancing its near-term products.
For India’s startup ecosystem, these funding rounds represent more than just capital injection – they showcase the country’s ability to build globally competitive technology solutions while maintaining strong research and development capabilities within India. The success of these startups is likely to inspire more entrepreneurs to tackle complex technological challenges and attract additional international investment to India’s growing deep tech sector.
