BLR-based Insurtech Startup Healspan Secures Seed Funding Led by Lead Angels

This round follows Healspan’s pre-seed funding last year, when the startup raised INR 1.2 crore.

Bengaluru-based health insurtech startup Healspan has raised an undisclosed amount in a seed funding round led by Lead Angels, an investment and financial services network.

The funding also drew interest from notable angel investors, including Ankitt Jain, founder of Paper Arizona; Srijith Nair, founder and CEO of Gowelnext Solutions; and The Doctorpreneur Academy.

This round follows Healspan’s pre-seed funding last year, when the startup raised INR 1.2 Cr.

With the fresh capital injection, Healspan plans to prioritize expanding its marketing and sales efforts while also strengthening its engineering and technology teams.

This dual approach aims to boost market visibility and address operational challenges faced by hospital administrators. Co-founders Sabarinath U and Abhi Sinha expressed excitement about the funding, seeing it as a strategic boost to their growth trajectory.

“This capital comes at a pivotal time as we are on a fast-growth track. Our immediate focus will be on building a robust sales team, launching new tech innovations, expanding our hospital network, and capturing greater market share,” the founders commented.

Backing from Lead Angels

Lead Angels, known for its focus on early-stage fintech startups in India, has been impressed by Healspan’s approach to the healthcare insurance space. Hanuman Tripathi, Partner for Fintech at Lead Angels, explained the motivation behind the investment.

“Healspan’s tech-led solution addresses the longstanding issue of delayed medical insurance claims, impacting both hospitals and patients. Their co-founders’ vision, business ethics, and ambition to become a market leader were instrumental in our decision to support them,” he noted.

Tripathi emphasized the strategic value that Lead Angels aims to add to Healspan’s growth journey.

With over 50 hospitals across 10 cities already onboard, Healspan’s platform streamlines insurance claim processing and reduces manual interventions.

By enhancing the cashless claim process and reducing turnaround times for insurance payments, the platform benefits both hospitals and patients, improving the overall experience. Healspan’s goal is to serve a network of 200 hospitals across India by the end of the fiscal year 2024-25.

Having established its presence in North India, Healspan is now setting its sights on expansion into Eastern states in the coming months. The startup has reported a significant 3x revenue growth over the last six months, and it projects 10x year-on-year growth by the close of the fiscal year 2024-25.

According to the founders, this rapid growth reflects rising insurance adoption and demand for streamlined claims processes within hospitals.

To sustain its ambitious goals, Healspan is preparing for another funding round by the end of 2025.

This next phase of investment will support further expansion, product development, and the integration of more advanced technological solutions tailored to the healthcare insurance sector.

Lead Angels’ fintech vertical continues to prioritize investments in innovative Indian startups targeting sectors like health and insurance tech. Focused on pre-seed to pre-Series-A companies, the network actively supports startups aiming to reshape traditional business processes through technology.

With strategic funding and an expanding hospital network, the startup aims to deliver efficient, patient-focused solutions that contribute to the healthcare sector’s digital transformation.

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