Healspan raises seed funding to accelerate growth and expand hospital network

Bengaluru-based insurance-tech startup Healspan has raised an undisclosed amount in a seed funding round led by Lead Angels, a financial services and angel investing network. The funding round also saw participation from angel investors, including Ankitt Jain, Founder of Paper Arizona; Srijith Nair, Founder and CEO of Gowelnext Solutions; and The Doctorpreneur Academy. This follows Healspan’s pre-seed funding round of INR 1.2 crore last year.

Healspan plans to use the new capital primarily for marketing, sales, and growth efforts. A portion of the funds will also be allocated towards strengthening the company’s focus on engineering and technology, enabling the development of new solutions that address the operational challenges faced by healthcare administrators in hospitals.

Sabarinath U and Abhi Sinha, Co-founders of Healspan, commented on the funding: “We are elated to announce Healspan’s seed fundraise – which is a testament to our growing credibility and growth focus. The capital raised comes at the right time, as we have 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.”

Hanuman Tripathi, Partner – Fintech at Lead Angels, shared his thoughts on the investment: “We at Lead Angels were quite impressed by Healspan for innovating a tech-led solution to minimise 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.”

Lead Angels’ fintech vertical focuses on investment opportunities for Indian fintech startups, targeting pre-seed to pre-Series-A companies. Healspan, on the other hand, has tied up with more than 50 hospitals across 10 cities in India. The platform’s technology reduces manual effort, improves insurance payment turnaround time, and ensures efficient cashless claims management, benefiting hospitals and enhancing the patient experience.

Having consolidated its presence in North India, Healspan is now looking to expand into the Eastern states over the coming months. The startup has reported 3x revenue growth over the last six months and aims to achieve 10x year-on-year growth by the end of the fiscal year 2024-25. Healspan also plans to cater to at least 200 hospitals across India by then. To support these goals, the startup is preparing for another round of funding by the end of next year.