B2B healthcare financing startup HealthCRED raises $1.2 million in funding

New Delhi-based B2B healthcare financing startup HealthCRED has raised $1.2 million in a seed funding round led by Antler India, TRTL VC, DeVC, iSeedVC, and Angel List India.

Several prominent angel investors also participated in this round, 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 fundraising

HealthCRED plans to use the raised capital to enhance customer relationships and expand its operations to the southern and western regions of India.

Additionally, the startup plans to recruit new talent and focus on developing B2B loan onboarding and loan management systems. 

This will involve creating an end-to-end digitized B2B healthcare lending framework, which will streamline processes and improve efficiency in healthcare financing.

What does HealthCRED do?

Founded in 2022 by Shrey Jain and Arpit Jangir, HealthCRED is focused on addressing the working capital needs of India's rapidly expanding healthcare industry, which is currently valued at over $300 billion.

The startup provides swift, comprehensive, and adaptable financing solutions specifically designed for the healthcare sector.

It partners with hospitals, specialized healthcare service providers (HSPs) in nephrology, oncology, and diagnostics, insurers, and pharmaceutical supply chain partners to deliver effective financing options.

Aiming to disburse over $1 billion in financing

HealthCRED aims to disburse over $1 billion in financing over the next five years through digital channels, leveraging alternate data-driven underwriting.

"With the rapid penetration of health insurance in the post-COVID scenario, there has been increased working capital management stress for hospitals and HSPs. The key factor is the delay associated with the realisation of insurance receivables. Our aim is to work towards stabilising their cash flow cycles through early financing of these delayed receivables. This would help further ensure quality delivery of patient care, thereby enabling improved alignment with SDG Target 3.8 and Universal Healthcare Coverage (UHC)," said Shrey Jain, Co-founder and CEO of HealthCRED.