Healthcare-focused fintech startup Care.fi raises $8 million in funding

Healthcare-focused fintech startup Care.fi has raised $8 million, or about Rs 72.46 crore, in a Series A funding round comprising a mix of equity and debt, as it looks to scale its AI-led revenue cycle platform for hospitals in India and overseas.

The round includes $5 million in equity led by July Ventures, with participation from Peak XV Partners, Accion Venture Lab and Sadev Ventures. The remaining $3 million was raised as debt from Trifecta Capital and Vivriti.

The Gurugram-based startup had earlier secured $2 million, or Rs 16 crore, in debt from Trifecta Capital and $0.6 million, or Rs 5 crore, from UC Inclusive Credit in July 2024. It also raised $957,000 in debt from Wint Wealth and Caspian in 2024, and about $650,000 from RevX to enhance support for the Ayushman Bharat scheme. In total, the startup had raised around $5 million prior to this round.

Founded in 2021 by Vikrant Agrawal and Sidak Singh, Care.fi operates an AI-powered healthcare operating system that enables hospitals to manage documentation, coding, claims processing and collections. It also runs an NBFC arm that provides working capital loans, supply chain financing, receivables financing and invoice discounting, including through partnerships with Hindon Mercantile and Prateek Securities.

The platform facilitates upfront claim disbursement in as little as 10 minutes, addressing delays in revenue realisation for hospitals under government and insurance-backed schemes such as Ayushman Bharat and ESI.

“This capital allows us to go deeper on our core mission: making healthcare revenue operations seamless and invisible for hospitals. Doctors and care teams should not be spending time navigating paperwork, approvals, or delayed payments. We are building an AI-first healthcare operating system that takes care of revenue end-to-end,” said cofounder Vikrant Agrawal.

The company plans to use the fresh capital to expand into additional Indian cities, accelerate international expansion across the United States and the Middle East, and invest further in product development.

Last month, Care.fi acquired Bengaluru-based discharge automation platform Aldun to reduce waiting time after final billing from hours to about 10 minutes. The startup aims to scale from 10,000 to nearly 1 lakh automated discharges per month.

Care.fi said the expansion of cashless hospital care across government and private insurance schemes has increased claims volumes, compliance requirements and working capital needs. It claims to have grown its assets under management by more than 10% year-on-year as it supports hospitals navigating rising operational complexity.