Bengaluru-based MedPay, a platform that connects primary health care to insurers for cashless claims in real-time, has raised US$1.2 million (about Rs 8.9 crore) in a seed funding round led by UK-based Talent Investor Entrepreneur First (EF) and GrowX Ventures.
According to the statement, The raised funding will be used to serve increasing demand and expanding product offerings. Founded in April 2020 by Arun Bhatia and Ravi Chandra, MedPay is an AI-powered platform that connects healthcare service providers like Doctors, Pharmacies, and Diagnostic centers to insurers for cashless claims in real-time.
Its network MedPay Connected Care Network (CCN) enables healthcare centers to accept insurance payments in real-time and facilitates a cashless claims process for the insured.
Speaking on the development, Ravi Chandra, Co-founder & CEO of MedPay said:
“There is an immense need for OPD insurance in India. IRDAI, the regulatory body, is encouraging insurers to cover OPD and most insurers are experimenting with a variety of OPD insurance products. We as a disruptor in this space are empowering insurers by giving them access to a large OPD network with a cashless claims facility."
"Thus, also enabling stand-alone Clinics, Pharmacies, and Labs with the ability to accept insurance payments without friction," he adds. The startup is backed by early-stage VC fund Entrepreneur First and GrowX.
MedPay claims that MedPay CCN has access to more than 50,000 health centers spread across 450 cities covering 4000+ pin codes. "MedPay’s (API) approach and CCN will address the gap and help connect these pharmacies with other stakeholders thus bringing them into the digital economy," the company adds.
"MedPay benefits from the same; in addition, as a first-mover in this space, it is poised for similar success propelled by UHI (Universal Health Interface), the Health Stack, and the National Digital Health Mission,” said Venkat Raju, Venture Partner at Entrepreneur First.
The startup claims during the COVID times it has witnessed rapid growth in the business by enabling the unorganized OPD segment to transact digitally with customers in their neighborhoods. Stand-alone pharmacies have benefited immensely through the digital processing of medicine orders during lockdowns, it adds.
"MedPay is leveraging tech to build India’s largest PHC network that at one end, will allow patients to access and consume services frictionlessly and at the other, allow business and insurers to leverage a reliable, diverse, and pan-India network to acquire new customer segments and significantly lower cost per transaction," said Manu Rikhye, Partner at GrowX Ventures.