HealthCRED, an India-based business to business (B2B) healthcare financing startup, announced Monday that it has raised $1.2 million in a seed funding round.
The round was led by Antler India, TRTL VC, DeVC, iSeedVC and Angel List India, HealthCRED said in a statement.
The round also saw participation from prominent angel investors including Dr. Subho Ray (President, IAMAI), Nitin Gupta (Chief Executive Officer[CEO], Uni Cards), Amit Lakhotia (CEO, ParkPlus) and Founders of InsuranceDekho and SEA-based Docquity.
According to the statement, the infusion of capital will be strategically utilized to enhance customer relationships and expand operations to the Southern and Western parts of the country.
It will also be channelized to hire fresh talents and develop state-of-the-art B2B loan onboarding and loan management systems, creating an end-to-end digitized B2B healthcare lending framework.
HealthCRED noted the firm is addressing a burgeoning working capital gap in hospitals and the healthcare supply chain, targeting the needs of India’s rapidly growing $300 Billion+ healthcare industry.
With ambitious growth targets, the company aims to disburse over $1 billion over the next five years through digital means, basis alternate data driven underwriting.
Founded in 2022 by Shrey Jain and Arpit Jangir, HealthCRED is a healthcare-focused small finance bank (SFB).
The company provides financing solutions tailored for the healthcare sector.
Its collaborative approach involves partnering with Hospitals, specialized healthcare service providers (HSPs across nephrology, oncology, and diagnostics), insurers, and pharmaceutical and consumable supply chain partners to deliver intelligent and efficient financing solutions.
“With the rapid penetration of health insurance in the post-COVID scenario, there has been an increased working capital management stress for hospitals and HSPs,
“The key factor is the delay associated with the realization of insurance receivables,” said Shrey Jain, Co-Founder and CEO of HealthCRED.
“Our aim is to work towards stabilizing 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),” he added.
Nitin Sharma, Partner at Antler India, said he healthcare ecosystem faces a significant working capital gap, particularly impacting small to mid-sized hospitals with limited capital access and claims management capabilities.
According to him, this gap is expected to widen with increasing health insurance penetration and delayed insurer payments.
He noted banks and NBFCs typically focus on large hospital infrastructural loans, leaving small hospitals underserved.
“HealthCRED aims to address this by offering working capital finance against cashless insurance receivables, targeting a multi-billion dollar gap,
“We are thrilled to back the HealthCRED team to become a major healthcare lender, addressing various financing needs over time,” he added.
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