HealthCRED Secures USD 1.2 Million in Seed Funding to Revolutionize Healthcare Financing
- ByStartupStory | August 13, 2024
HealthCRED, a pioneering B2B healthcare financing startup, has successfully raised USD 1.2 million in its seed funding round. The round was led by Antler India, along with participation from TRTL VC, DeVC, iSeedVC, and Angel List India. The funding round also attracted notable angel investors including Dr. Subho Ray, President of IAMAI; Nitin Gupta, CEO of Uni Cards; Amit Lakhotia, CEO of ParkPlus; and the founders of InsuranceDekho and SEA-based Docquity.
The company announced that the newly acquired capital would be strategically utilized to enhance customer relationships, expand operations into Southern and Western India, and develop advanced B2B loan onboarding and management systems. HealthCRED’s primary objective is to create a comprehensive, digitized B2B healthcare lending framework, addressing the growing need for specialized financial solutions in the healthcare sector.
Founded in 2022 by Shrey Jain and Arpit Jangir, HealthCRED is on a mission to become India’s first healthcare-focused Small Finance Bank (SFB). The startup provides tailored financing solutions for the healthcare industry, collaborating with hospitals, specialized healthcare service providers, insurers, and pharmaceutical supply chain partners to deliver effective and intelligent financing options.
Shrey Jain, Co-Founder & CEO of HealthCRED, emphasized the importance of their mission, stating, “The rapid growth of health insurance post-COVID has increased working capital stress for hospitals and healthcare service providers. Delays in insurance receivables are a major issue. Our goal is to stabilise cash flow cycles through early financing of these receivables, ensuring better patient care and aligning with SDG Target 3.8 and Universal Healthcare Coverage (UHC).”
Nitin Sharma, Partner at Antler India, highlighted the critical gap in the healthcare sector’s working capital needs, adding, “The healthcare sector faces a significant working capital gap, particularly affecting small to mid-sized hospitals with limited access to capital and claims management. As health insurance penetration increases, this gap is expected to widen. HealthCRED aims to bridge this gap by providing working capital finance against cashless insurance receivables, targeting a multi-billion dollar market. We are excited to support Shrey, Arpit, and the HealthCRED team in addressing these critical financing needs.”
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