Exclusive: B2B Healthcare Startup Zoplar Shuts Operations

Exclusive: Blume Ventures-Backed B2B Healthcare Startup Zoplar Shuts Operations

SUMMARY

The startup shut its operations in February, just a month after it raised $3.4 Mn in its Series A round. It is now returning the capital to the investors

Zoplar decided to shutter operations after the CDSCO, earlier this year, said that imports of refurbished medical devices are not allowed in the country, sources said

Zoplar was a medical equipment procurement platform for small and medium-sized hospitals, and primarily supplied refurbished medical devices to around 300+ hospitals

Blume Ventures-backed Zoplar shut its operations in February this year, just a month after it raised $3.4 Mn in its Series A funding, sources told Inc42.

The startup is now returning the capital raised in its Series A round to its investors.

Zoplar decided to shutter its operations after the Central Drugs Standard Control Organisation (CDSCO), earlier this year, said that imports of second-hand or refurbished medical devices are not allowed in the country, the sources said. In a letter, the CDSCO asked the customs department to not release such devices from the port of entry, Times of India reported in January.

Zoplar declined to comment on Inc42’s queries on the development.

Founded in 2022 by Amit Sah and Umesh Sharma, Zoplar was a medical equipment procurement platform for small and medium-sized hospitals, primarily those with around 50 beds. The Delhi NCR-based startup primarily supplied refurbished medical devices to around 300+ hospitals in and around the Delhi NCR region.

“Medium and small-sized hospitals rely on refurbished medical devices, instead of purchasing new devices, to save cost. This is where Zoplar came in. They not only provided refurbished medical devices but also after-sale service for these devices,” one of the sources said.

Zoplar, based on the requirement of hospitals, procured refurbished medical devices from certified dealers.

However, in a bid to scale its business, the startup decided to import refurbished medical devices in bulk on its own. This was the reason it raised Series A funding, led by Blume Ventures. The round also saw participation from BEENEXT, Saison Capital, Atrium Angels, Finfirst and LogX Ventures.

However, the founders decided to shut operations post the CDSCO order and return the funding.

“They were scaling fast. They were already making around 16% margin from the imports of refurbished medical devices and were on track to increase this to 35-40%. However, the CDSCO order came as a huge blow,” another source, who was associated with the startup, said.

Including its last funding round, Zoplar had raised $5.1 Mn since its inception from the likes of Titan Capital, Stride Ventures and Panthera Peak.