Indian Mental Health Startups Transition to In-Person Services Amid Waning Interest

BENGALURU: As mental health awareness grows among Indians, particularly the youth, there is a noteworthy shift among startups toward establishing physical therapy centers. This change aims to improve therapy retention rates as many individuals have dropped out of online-only therapeutic processes.

Dipanjan Basu, co-founder and partner at Fireside Ventures, notes, ‘Only a few people repeat online-only therapy sessions because the outcomes are not tangible. Like any other healthcare service, an in-person experience is crucial.’

Amit Malik, founder and CEO of Amaha Health, highlights the need for clinical care combined with technology, stating, ‘Mental health support in India requires high-need clinical care with technology and physical infrastructure going hand in hand.’ Amaha Health is preparing to launch its first mental health hospital in Bengaluru this May, aiming to provide in-patient care akin to single-specialty hospitals.

Despite a surge in awareness, investor interest in the mental health sector seems to be dwindling. Startups in this field raised only $8 million in 2024, a stark contrast to $41 million in 2022, as reported by market intelligence firm Venture Intelligence.

Overall investments in healthcare remain robust, with private equity and venture capital contributing $3.7 billion in 2024. However, mental health services continue to lag behind. An anonymous investor from a healthcare-focused venture capital firm remarked, ‘Mental health and wellness continues to be among the under-penetrated areas in healthcare, given its novelty in the country.’

Projections indicate that the mental health market in India could grow from $6.8 billion in 2023 to $62.8 billion by 2032, reflecting a compound annual growth rate of 28.16%, according to Astute Analytica.

Lissun, another startup, is actively expanding its services, offering physical care for children with special needs. Krishna Veer Singh, co-founder and CEO of Lissun, emphasizes the growing parental awareness, stating, ‘Parents of children with special needs are also becoming more aware of the importance of seeking help early.’

However, challenges persist in scaling mental health services. As Basu points out, ‘Mental health is a tricky area because the definition of mental health itself is not very clear.’ With over 200 million people facing mental health conditions in India, only a fraction seek professional help.

As the demand for mental health services continues to rise, startups are urged to adapt their models to ensure both accessibility and effectiveness in the evolving landscape of mental health care in India.