Business-to-business (B2B) healthcare financing company HealthCRED announced that it has raised $1.2 million in a seed funding round led by Antler India, TRTL VC, DeVC, iSeedVC, and Angel List India.
The round saw participation from angel investors including Internet and Mobile Association of India (IAMAI) Chairman Subho Ray and Uni Cards CEO Nitin Gupta, among others.
The company will use the capital raised to expand its operations in the southern and western parts of the country.
Additionally, the seed capital will be used to hire new talent and develop B2B onboarding and loan management systems (LMS).
The Delhi-based company has a post-money valuation of $13 million, according to data from market intelligence platform Tracxn.
“With the rapid penetration of health insurance in the post-COVID scenario, the stress on working capital management has increased for hospitals and healthcare providers. The key factor is the delay associated with realizing insurance receivables,” said Shrey Jain, Co-Founder and CEO, HealthCRED.
Jain added that the company is working to stabilise these cash flow cycles by pre-funding these delayed receivables.
The company has partnered with hospitals, HSPs specializing in nephrology, oncology and diagnostics, insurers and pharmaceutical and consumables supply chain partners.
“Banks and non-banking financial companies (NBFCs) often focus on large loans for hospital infrastructure, leaving small hospitals underserved. HealthCRED aims to address this problem by offering working capital financing in exchange for cashless insurance receivables, aiming to bridge a multi-billion dollar gap,” said Nitin Sharma, Partner at Antler India, a venture capital fund.
The company was founded in 2022 by Shrey Jain and Arpit Jangir.
First published: August 12, 2024 | 20:07 IS
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