New Delhi-based B2B healthcare financing startup HealthCRED has successfully raised $1.2 million in a seed funding round. This funding round was led by Antler India, TRTL VC, DeVC, iSeedVC, and Angel List India. The round also saw participation from several prominent angel investors, including Dr. Subho Ray, President of the Internet and Mobile Association of India (IAMAI), Nitin Gupta, CEO of Uni Cards, Amit Lakhotia, CEO of ParkPlus, and the founders of InsuranceDekho and SEA-based Docquity.
Purpose of the Fundraising
HealthCRED plans to utilize the newly raised capital to strengthen customer relationships and expand its operations to the southern and western regions of India. The startup also intends to recruit new talent and focus on developing B2B loan onboarding and loan management systems. This will involve creating a fully digitized B2B healthcare lending framework aimed at streamlining processes and improving efficiency in healthcare financing.
What HealthCRED Does
Founded in 2022 by Shrey Jain and Arpit Jangir, HealthCRED is dedicated to addressing the working capital needs of India’s rapidly expanding healthcare industry, which is currently valued at over $300 billion. The startup offers swift, comprehensive, and adaptable financing solutions specifically designed for the healthcare sector.
HealthCRED partners with hospitals, specialized healthcare service providers (HSPs) in areas like nephrology, oncology, and diagnostics, as well as insurers and pharmaceutical supply chain partners, to deliver effective financing options. Their services are tailored to help these organizations manage their cash flow cycles, particularly in the face of delays in insurance receivables.
Aiming for $1 Billion
HealthCRED has ambitious plans to disburse over $1 billion in financing over the next five years through digital channels. The startup leverages alternate data-driven underwriting to achieve this goal.
Shrey Jain, Co-founder and CEO of HealthCRED, highlighted the importance of stabilizing cash flow cycles for hospitals and HSPs, especially in the post-COVID era where the penetration of health insurance has increased. “Our aim is to work towards stabilizing their cash flow cycles through early financing of these delayed receivables,” Jain said.
This initiative is expected to improve patient care quality and support the achievement of Sustainable Development Goal (SDG) Target 3.8, which focuses on Universal Healthcare Coverage (UHC).
