Bengaluru-based insurance-tech startup Healspan – provider of a disruptive revenue cycle management software enabling hospitals to seamlessly manage all key aspects relating to their health insurance claims settlement and revenue enhancement – has raised an undisclosed amount of seed funding led by financial services and angel investing network Lead Angels. The round also witnessed participation from several other angel investors like Ankitt Jain (Founder, Paper Arizona); Chief Investment Officer of a GCC based Investments firm, Srijith Nair (Founder & CEO, Gowelnext Solutions); and The Doctorpreneur Academy. Prior to this, Healspan had closed a pre-seed funding round of INR 1.2 Cr last year.
Healspan will be utilizing the fresh capital raised through this seed round majorly towards bolstering its marketing and sales, and growth. Additionally, the funds will play an instrumental role in enabling Healspan to maintain its continued focus on engineering and tech, and aid them in bringing to the fore innovative tech-enabled solutions for solving various pain points and/or operational challenges faced by its core target audience, i.e. healthcare administrators across hospitals.
Speaking about the fundraise, Sabarinath U and Abhi Sinha, Co-Founders of Healspan said, “We are elated to announce Healspan’s seed fundraise – which is a testament to our growing credibility and growth focus. The capital raised through this seed round comes just at the right time, when we’ve already started riding upon the fast-track growth curve, and are attempting to grow exponentially in the months and years to come.
Besides fostering Healspan’s growth, a significant portion of these funds would be invested towards acquiring talent for building a robust sales team, launching our new line of products and tech innovations, expanding our hospitals’ network, and capturing a greater market share.
As Healspan continues to take significant strides in disrupting the health-insurtech market, we will be focusing on these strategic aspects in the near future, in lines with our mission and vision of streamlining health insurance claims and making healthcare administration effortless and simplified in the long run”.
Hanuman Tripathi, Partner – Fintech, Lead Angels commented, “We at Lead Angels were quite impressed by Healspan for innovating a tech-led solution to minimize the pervasive issue of delays in processing medical insurance claims, affecting both hospitals and patients. In addition to that, the co-founding team’s business acumen, exemplary business ethics, and vision and commitment to make Healspan a market leader in this space also served as the key factors shaping our decision to back Healspan.
As we onboard Healspan as our portfolio startup, we are excited about propelling its mission, and helping the startup in leveraging its growth potential amid the rising insurance penetration in this sector”.
Notably, Lead Angels’ fintech vertical provides exclusive, high-potential investment opportunities for Indian fintech startups. Backed by a proven track record in early-stage investments and a leadership team with domain expertise, it targets promising pre-seed to pre-Series-A companies via a SEBI-registered Category 1 AIF.
On the other hand, Healspan has, till date, tied-up with and catered to more than 50 hospitals across 10+ cities in India. By cutting down significantly on manual effort, reducing insurance payment turnaround time, and ensuring efficient cashless claims management with the help of advanced technology, Healspan’s platform eliminates the hassle for these hospitals and simultaneously enhances patient experience.
Having already consolidated its presence by partnering with numerous reputed hospitals across North India, the startup is now looking to expand into the Eastern states of the country over the next few months. Healspan has witnessed an impressive 3x revenue growth in the last six months, and is now aiming to achieve 10x year-on-year (YOY) growth by the end of the current fiscal, i.e. FY 2024-25, while catering to at least 200 hospitals pan India. To support its ambitious growth and expansion goals, the startup would be attempting to secure at least one more round of funding by the next year-end.