Claims Management Startup Healspan Bags Pre-Seed Funding from PedalStart

The startup states the pre-seed capital will fuel Healspan's technological advancements, talent acquisition, and overall business operations and growth.

Bengaluru-based claims-management startup Healspan has secured INR 1.2 Cr in a recent Pre-Seed funding round led by PedalStart, a startup community-builder and accelerator.

This funding marks a leg up after the first institutional fundraising round of the startup since its establishment in 2022. With strategic fundraising efforts, Healspan has now amassed a total funding of INR 1.7 Cr.

Founded in 2022 by Sabrinath U and Abhi Sinha, Healspan specialises in providing a streamlined, cashless insurance claims process, with a focus on simplifying the often intricate procedures for healthcare institutions.

The startup claims to have experienced notable growth, boasting a 4x increase in revenue. As part of its expansion strategy, Healspan has actively diversified its revenue streams and attracted paid subscribers to its platform.

One of the key features of Healspan's solution is its claim to reduce the insurance payment turnaround time by 30%, ensuring that long-pending claims are settled within 90 days. This efficiency not only benefits healthcare providers but also contributes to a smoother experience for insurance companies and, ultimately, the end-users.

Capital Utilisation Plans

As per the startup, the recently acquired pre-seed capital will play a crucial role in fueling Healspan's technological advancements, talent acquisition, and overall business operations and growth. The funds will also contribute significantly to expanding Healspan's clientele and boosting subscriptions and revenue.

Speaking about the fundraising, the founders of Healspan said, "The funds raised will enable us to make significant product and tech-related enhancements and upgrades, especially in terms of optimising the front-end of our flagship software. This will 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."

PedalStart, the lead investor in this round, emphasised the uniqueness of Healspan's solution in the Indian market.

The founders of PedalStart, Manas Pal and Aditya Darolia, said, "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."

Healspan's Expansion Plans

Healspan has expanded its footprint in multiple metros and Tier I cities, including Bengaluru, Chennai, Hyderabad, Delhi-NCR, and Mumbai. It is now set to expand its presence to additional locations across India, with a target of serving at least 1000 hospitals by the end of 2025.

This expansion plan aligns with Healspan's mission to make its tech-enabled platform accessible to a broader audience. It aims to reduce insurance payment turnaround times further and streamline the claims process.

The startup adds that Healspan's disruptive solution is gaining recognition for its innovation in addressing B2B pain points in the insurance sector, particularly in the realm of healthcare operations.g

In another development in the insurance sector, in October last year, Plum, an insurtech platform in India known for providing group health insurance and business insurance solutions, introduced a digital-first solution for reimbursement claims named 'e-imburse.'

This system aims to simplify and expedite the traditionally cumbersome reimbursement process, transforming it into a user-friendly and efficient digital experience.