(MENAFN- KNN India)
New Delhi, Aug 13 (KNN) HealthCRED, a Delhi-based business-to-business (B2B) healthcare financing firm, has successfully raised $1.2 million in a seed funding round.
The investment was led by prominent venture capital firms including Antler India, TRTL VC, DeVC, iSeedVC, and Angel List India.
The funding round also saw participation from notable angel investors, including Subho Ray, President of the Internet and Mobile Association of India (IAMAI), and Nitin Gupta, CEO of Uni Cards.
Founded in 2022 by Shrey Jain and Arpit Jangir, HealthCRED aims to address the growing need for working capital management in the healthcare sector, particularly in light of the increased penetration of health insurance following the COVID-19 pandemic.
The company focuses on providing early financing for delayed insurance receivables, helping to stabilize cash flow cycles for hospitals and health service providers (HSPs).
Shrey Jain, co-founder and CEO of HealthCRED, explained the company's mission: "With the rapid penetration of health insurance in the post-COVID scenario, there has been increased working capital management stress for hospitals and health service providers. The key factor is the delay associated with the realization of insurance receivables."
The newly acquired funds will be utilised to expand HealthCRED's operations in southern and western India. Additionally, the capital will support the hiring of fresh talent and the development of B2B loan onboarding and loan management systems (LMS).
HealthCRED has already established partnerships with hospitals, specialized HSPs in fields such as nephrology, oncology, and diagnostics, as well as insurers and pharmaceutical and consumable supply chain partners.
The company's innovative approach targets a multi-billion dollar gap in the market by offering working capital finance against cashless insurance receivables, particularly for small hospitals that are often underserved by traditional banks and non-banking financial companies (NBFCs).
Nitin Sharma, partner at Antler India, highlighted the significance of HealthCRED's business model: "Banks and NBFCs typically focus on large hospital infrastructural loans, leaving small hospitals underserved. HealthCRED aims to address this by offering working capital finance against cashless insurance receivables."
According to data from market intelligence platform Tracxn, HealthCRED's post-money valuation stands at $13 million, underscoring investor confidence in the company's potential to revolutionize healthcare financing in India.
As the healthcare sector continues to evolve and adapt to post-pandemic realities, HealthCRED's innovative financing solutions are poised to play a crucial role in supporting the growth and stability of healthcare providers across the country.
(KNN Bureau)
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