Care.fi raises $8 million in equity-debt funding round

Healthcare-focussed fintech platform Care.fi has raised $8 million in a round consisting of equity and debt. The equity portion of $5 million was led by July Ventures, with participation from Peak XV Partners, Accion Ventures, and Sadev Ventures, while Trifecta and Vivriti pitched in with $3 million in debt.

The Gurugram-based company plans to use the funds to expand its operations to new cities like Jaipur, Lucknow, Chandigarh and more, develop its artificial intelligence (AI)-powered healthcare operating system and international expansion in the US and the Middle East.

Care.fi has built a platform to help hospitals efficiently manage their documentation, coding, and insurance claims processing and collection using its AI-powered infrastructure. Its non-banking financial company (NBFC) arm provides working capital solutions.


“The insurance penetration in India is increasing. So, we need to expand faster to cope with the demand. Currently, we operate in five cities, and we plan to expand it to around 12 to 15 cities in the coming months,” said Vikrant Agrawal, cofounder of the company.

Some of its clients include Aster Hospital, Sir Ganga Ram Hospital, Manipal Hospital, and Apollo Hospital across different cities. So far, it has handled 1.5 lakh patient claims.

Currently, the company has about 250 employees. Following the funding, it plans to expand this number by 500-600.

“A single hospital has to manage many insurance players and claims. The process is getting more complex with documents, capturing live photos, and more. This is where our platform comes into play. Our AI engine in the background will efficiently identify and collect the claim details,” said Sidak Singh, cofounder of the company.

According to Singh, the company's AI-powered system can efficiently handle the insurance claims work done by a team of 15-20 people in a typical hospital. It reduces the discharge time from 4.5 hours to just 20 minutes, according to the founders.

Founded in 2021 by Agrawal and Singh, the company has raised about $12.5 million in funding.

“Getting discharged, with insurance, from a large Indian hospital can be tedious and lengthy. Care.fi’s instant discharge solution demonstrates how innovation and trust come together to create world-class customer experiences,” said Mohit Bhatnagar, managing director at Peak XV Partners, in a statement.