Delhi NCR-based B2B healthcare startup Zoplar, known for supplying refurbished medical devices to small and medium-sized hospitals, has quietly shut down its operations in February 2025. This surprising development comes just a month after the company raised $3.4 million in its Series A funding round led by Blume Ventures. Sources reveal that Zoplar is returning the capital raised to its investors following a regulatory crackdown on the import of refurbished medical devices by the Central Drugs Standard Control Organisation (CDSCO).
Zoplar’s Business Model: Affordable Medical Equipment for Smaller Hospitals
Founded in 2022 by Amit Sah and Umesh Sharma, Zoplar carved a niche by catering to hospitals with around 50 beds, primarily in the Delhi NCR region. The startup focused on providing refurbished medical devices, a cost-effective alternative for smaller healthcare providers who often cannot afford brand-new equipment.
Zoplar not only procured these devices from certified dealers but also offered after-sale service, addressing a critical gap in the healthcare supply chain. This model helped over 300 hospitals access quality medical equipment without the heavy price tag of new devices.
Regulatory Hurdle: CDSCO’s Ban on Import of Refurbished Medical Devices
The turning point for Zoplar came early this year when the CDSCO issued a directive banning the import of second-hand or refurbished medical devices into India. The order instructed customs authorities to block the release of such devices at ports, severely impacting startups relying on imports to scale their operations.
Zoplar had planned to ramp up its business by importing refurbished devices in bulk, a strategy that prompted its recent Series A funding round. However, the CDSCO’s ban effectively halted this growth plan, forcing the founders to make the difficult decision to cease operations.
Funding and Financials: From Rapid Growth to Shutdown
Before shutting down, Zoplar had raised a total of $5.1 million from prominent investors including Blume Ventures, BEENEXT, Saison Capital, Titan Capital, Stride Ventures, and Panthera Peak. The Series A round alone brought in $3.4 million, signaling strong investor confidence in the startup’s potential.
Sources close to the company disclosed that Zoplar was already generating around 16% margins from its refurbished device imports and was on track to increase margins to 35-40%. Despite this promising trajectory, the regulatory clampdown proved insurmountable.
Impact on Healthcare Sector and Lessons for Startups
Zoplar’s shutdown highlights the challenges startups face in navigating India’s complex regulatory environment, especially in highly regulated sectors like healthcare. Small and medium hospitals, which heavily depend on affordable refurbished medical equipment, now face uncertainty in sourcing these critical devices.
For startups, Zoplar’s story underscores the importance of aligning business models with evolving government policies and the risks of scaling dependent on regulatory approvals.
Conclusion: Regulatory Barriers Stall a Promising Healthcare Startup
Zoplar’s closure is a setback for India’s healthcare ecosystem, particularly for smaller hospitals seeking affordable medical technology solutions. While the startup showed promise with innovative procurement and service models, regulatory hurdles around refurbished medical device imports curtailed its growth ambitions.
As India’s healthcare infrastructure continues to evolve, there is a pressing need for clear, supportive policies that balance patient safety with accessibility and affordability. Meanwhile, startups must remain agile and proactive in adapting to regulatory changes to sustain and scale their impact.