Insurance-Tech Startup Healspan Raises Pre-Seed Funding of INR 1.2 Cr Led by PedalStart
National, 20 January 2024: Bengaluru-based insurance-tech startup Healspan, a prominent provider of B2B insurance claims management software, has raised ₹1.2 Crore in a recently concluded pre-seed funding round led by startup community-builder and accelerator PedalStart. While this marks the first institutional fundraising round for Healspan since its inception in 2022, the startup has, through its strategic fundraising endeavors, raised a total funding of ₹1.7 Cr till date.
With the aid of its revolutionary claims filing and tracking software, Healspan has already helped 60+ hospitals pan-India in seamlessly managing the documentation, queries, processing, and other key aspects relating to cashless health insurance claims. The company will be utilizing the newly acquired pre-seed capital to bolster its technology, talent acquisition, and overall business operations and growth. Furthermore, the funds raised through this round shall play an instrumental role in growing and scaling Healspan’s clientele, and in boosting their subscriptions and revenue.
Speaking about the latest fundraise, Mr. Sabarinath U and Mr. Abhi Sinha, Co-Founders of Healspan said, “We are thrilled to announce our pre-seed fundraise led by PedalStart – an exciting milestone in Healspan’s journey of empowering our users across the country to experience efficient and hassle-free claims management. The funds raised will enable us to make significant product and tech-related enhancements and upgrades, especially in terms of optimizing the front-end of our flagship software, and shall further enable us to onboard the right talent, including core team members, so that we can focus on growing sustainably and profitably while increasing our clientele and impact. From the long-term perspective, it steers us in the right direction towards realizing our mission of making healthcare administration effortless via automating and streamlining claims management using SaaS technology. Going ahead, we at Healspan remain committed to ensuring that our software reaches to and benefits maximum hospitals and tertiary healthcare centers across India”.
“In today’s time when India is emerging as one of the fastest-growing insurance markets globally, technology-based solutions, ie. insurance-tech tools and platforms are creating a transformative impact for industry stakeholders. Despite the sectoral boom, not too many players in our country are currently solving pain points on the B2B side. For instance, we noticed that when it comes to cashless insurance claims processing for hospitals, the software that Healspan has built is a first-of-its-kind, disruptive solution for India, which provides the startup an early-mover advantage in this niche segment. Also, we at PedalStart have been impressed by the founders’ vision and zeal to simplify healthcare operations by solving comprehensively for claims management. These factors collectively enabled us to decide to provide financial and other forms of backing to Healspan, and we look forward to extending our continued support to help them grow furthermore in the years to come,” commented Mr. Manas Pal and Mr. Aditya Darolia, Co-founders of PedalStart.
Notably, Healspan has been associated with PedalStart for over six months now. Speaking about the association with PedalStart, Sabarinath U and Abhi Sinha added, “Of late, PedalStart has been playing a pivotal role in supporting our entrepreneurial journey. As a matter of fact, the PedalStart team has already helped us a lot in terms of overcoming our business challenges, figuring out priorities and additional revenue streams, and in building the initial momentum for our product. They have also assisted us in getting access to our workspace (office) setup and other important resources at discounted prices, and till date continue to guide us and provide varied solutions at every step along the journey”.
Owing to the ongoing support of PedalStart, over the last four months, Healspan has increased its revenue by 4x and has been actively focusing on adding new revenue streams and paid subscribers to the business. The startup has already established its major presence across multiple metros and tier 1 cities like Bengaluru, Chennai, Hyderabad, Delhi-NCR, Mumbai, and others; and they are looking to expand to at least more locations across India while serving at least 1000 hospitals by the end of 2025.
Going forward, making cashless claim filing and tracking painless and effortless for hospitals and patients alike shall continue to remain the startup’s core focus area. However, over the long term, Healspan envisions being able to cater to new users beyond just the healthcare segment and shall attempt to solve various pain points for insurance and finance industry stakeholders as well.