How Wundrsight is using Virtual Reality to change mental healthcare

Imagine living with a fear so overwhelming that something as ordinary as entering a crowded room feels impossible. For someone struggling with severe social anxiety, obsessive-compulsive disorder (OCD), or post-traumatic stress, everyday situations can become psychological minefields. Yet the tools we use to treat these conditions have changed surprisingly little. Patients either sit in a quiet room trying to imagine frightening scenarios during therapy, or they rely on medications that may reduce symptoms without addressing the underlying behaviour. Now imagine if a doctor could place you inside the exact situation you fear, not in the real world, but in a completely safe, controlled virtual one. That is the idea behind Bengaluru-based startup Wundrsight Health, a company attempting to redefine how mental health and neuro-rehabilitation are delivered using virtual reality and AI. Founded in 2022 by clinical psychologist Nishtha Budhiraja and entrepreneur Raunak Swarnkar, Wundrsight is building technology that allows patients to confront their fears, measure their progress, and recover through immersive digital experiences rather than imagination alone. A founder who refused to follow someone else's script The story begins long before the VR headsets. Growing up in a conservative Punjabi business family, Nishtha Budhiraja knew at the age of eight that she wanted to become a psychologist. The path wasn't easy. Family expectations pushed her towards medicine. She briefly entered dental school before walking away, eventually earning admission to Delhi University to study psychology instead. To support herself, she baked premium cakes, tutored classmates, and later pursued Cognitive Neuropsychology in the United Kingdom. After Brexit disrupted her plans abroad, she returned to India, built a successful clinical practice, and dedicated herself to treating children and families. Then came an accident that changed everything. A fractured ankle confined her to bed for months, forcing her to shut down her clinics and rethink a question few therapists had seriously considered: could quality mental healthcare exist without requiring both doctor and patient to be physically present in the same room? Mental healthcare faces an unusual challenge. Unlike treating a broken bone, therapists often cannot recreate the situations that trigger a patient's anxiety. Someone afraid of public speaking cannot practically be taken to an auditorium every week. Wundrsight's answer is surprisingly straightforward: don't imagine reality, simulate it. Through immersive virtual environments through Neura AI and Neura XR platforms, patients can repeatedly experience realistic situations while clinicians remain in complete control of the intensity, pace and environment. Instead of relying purely on conversation, therapy becomes experiential, measurable and repeatable. Virtual reality has long been associated with entertainment. Wundrsight is betting that its most meaningful application may actually be inside hospitals. Its technology combines immersive VR experiences with AI-powered assessment tools that help clinicians monitor physical movement, behavioural responses and patient progress over time. The platform has already been deployed across hospitals and rehabilitation centres, providing therapists with objective data rather than relying entirely on patient recall. Healthcare is one of the hardest industries in which to build trust. Products cannot simply look impressive—they have to prove they work. That is why one of Wundrsight's biggest milestones wasn't fundraising. It was becoming India's only virtual reality therapy provider registered by the CDSCO as a Class B Software as a Medical Device. Today, the platform has delivered more than a thousand therapy sessions, trained medical professionals, expanded into multiple cities, and attracted backing from investors including Inflection Point Ventures, Social Alpha and Meta. Want the full playbook? This is only the beginning of the story. In the 4th edition of The Indian Dream , we go much deeper into: How Nishtha Budhiraja built Wundrsight after shutting down her physical clinics. Why India's mental healthcare system desperately needs a change The neuroscience behind Neura XR and how VR rewires behavioural responses. The company's business model, regulatory moat, fundraising journey and expansion strategy. Read the complete deep-dive in The Indian Dream magazine and unlock exclusive founder stories, business breakdowns and sector analyses by becoming a yearly subscriber.