Bengaluru-based Sukino is making substantial investments in this “missing middle.” The out-of-hospital healthcare chain recently secured $31 million in a Series B funding round led by Bessemer Venture Partners, with Rainmatter also participating, to expand its protocol-driven recovery and rehabilitation model throughout India.
Founded in 2016, Sukino manages over 850 beds across 11 centers and is profitable at the group level—an uncommon achievement in a capital-heavy healthcare sector. The new funding will facilitate geographic expansion and extend the variety of chronic conditions it addresses, as the demand for structured post-hospital care continues to grow.
The gap hospitals cannot fill
India’s hospital system primarily caters to acute care—surgeries, emergency procedures, and brief inpatient stays. According to Sukino Co-Founder and CEO Rajinish Menon, this creates a significant gap once patients have been medically stabilized.
“Hospitals are inundated. They cannot accommodate patients for extended periods due to economic factors, commercial challenges, and high patient volumes,” Menon explained to CNBC-TV18. “Families can only provide supportive care at home and lack the capacity to deliver clinical, rehabilitative care.”
For patients healing from strokes, severe neurological conditions, cancer therapies, or multiple comorbidities, this gap can be detrimental. Insufficient post-discharge care markedly increases the likelihood of complications and hospital readmissions, leading to both emotional and financial strain.
Sukino positions itself as a mediator between hospitals and homes, providing recuperative and rehabilitative services all in one location. Its facilities offer nursing, physiotherapy, occupational therapy, nutritional planning, and medical supervision over weeks or months—services that hospitals find challenging to perform effectively and homes cannot replicate.
A large, nascent market
Menon characterizes out-of-hospital care as a “very large, very nascent” market. As India’s disease burden—especially concerning strokes, neurological disorders, and cancer—continues to rise, hospital capacities remain limited. This reality compels families to seek institutional recovery options beyond tertiary hospitals.
In the last eight to nine years, approximately 77% of Sukino’s patients have originated from the neurological sector, with strokes comprising more than half of that number. Nevertheless, the company is witnessing an increasing demand from oncology patients undergoing chemotherapy and radiotherapy, as well as individuals with complex comorbidities requiring long-term health management.
“These are the patients for whom our model is highly effective,” Menon stated. “Recuperative and rehabilitative care go hand in hand to minimize readmissions.”
VC money follows healthcare reality
The $31 million Series B funding reflects rising investor confidence in post-hospital care as a scalable business opportunity, rather than merely a niche healthcare service. The support from Bessemer Venture Partners signifies a belief that structured recovery models could evolve into an essential component of India’s healthcare framework.
For Sukino, this funding will enable growth beyond its current bases in Bengaluru, Kochi, and Coimbatore. The company aims to increase its footprint across South India and enter selected Tier-1 cities and metropolitan areas in northern India.
“All of South India is available for expansion, along with numerous metro and Tier-1 cities in the north,” Menon remarked. “There is an enormous market.”
Profitable, yet asset-light
Healthcare typically involves substantial capital investments, but Sukino has adopted an asset-light strategy, setting itself apart from tertiary hospitals while providing hospital-grade services. Menon posits that this model is crucial for profitability.
“While we offer all the essential services found in hospitals, our asset-light approach helps minimize costs,” he noted. “It’s about maintaining sound operational economics and effectively controlling expenses.”
This strategy has resulted in impressive financial performance. Sukino has achieved 64% year-on-year growth, with a five-year compound annual growth rate of approximately 51%. Menon believes that sustained demand will continue to fuel growth, provided costs are kept in check.
“If the cost structure is managed correctly, profitability will not be an issue. It is also less capital-intensive compared to traditional tertiary hospitals,” he added.
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Insurance: the next inflection point
Another favorable trend for the sector is the gradual widening of insurance coverage beyond hospitalization. However, Menon cautions that insurance uptake and market acceptance must progress concurrently.
“It’s a chicken-and-egg scenario,” he stated. “Families need to embrace this model first, while insurance providers prefer scale before engaging with businesses like ours. Both will develop in tandem.”
As awareness increases and outcomes improve, post-hospital care could transform from an afterthought to a standard element of treatment pathways.
A structural shift underway
As India contends with overcrowded hospitals and a growing chronic disease burden, the case for structured recovery beyond hospital walls is becoming more compelling. Sukino’s growth—and the investment capital driving it—suggests that post-discharge care is transitioning from the periphery to the core of Indian healthcare.
What was once an invisible aspect of the patient journey is evolving into a distinct, investable healthcare sector—one that bears the potential to redefine recovery delivery in India.
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