New Delhi, Dec. 18 -- Medical diagnostic chain House of Diagnostics (HOD) has begun the process of raising $30-40 million in a largely primary funding round, two people familiar with the matter said, as the medical diagnostic and healthcare services space heats up.

"The company has been working closely with EY India to do the round," one of the people said. If the round goes through as planned, it will likely be the company's first external funding. It is expected to use the funds for expansion, the second person said, adding that the deal was launched a few weeks ago.

Both people spoke on the condition of anonymity. HOD and EY India did not respond to Mint's requests for comment.

Broadly, India's diagnostics market is set to expand at...