Healspan Raises Seed Funding Led by Lead Angels

Reportedly, the startup will utilize the fresh capital to enhance its marketing and sales efforts and support its growth initiatives.

Healspan, a Bengaluru-based healthtech startup specializing in revenue cycle management software, has raised an undisclosed amount of seed funding led by the financial services and angel investing network Lead Angels.

The funding round also saw participation from several angel investors, including Ankitt Jain, Founder of Paper Arizona; Srijith Nair, Chief Investment Officer of a GCC-based investment firm; and The Doctorpreneur Academy.

Healspan had previously closed a pre-seed funding round of INR 1.2 Cr last year.

Reportedly, the startup will utilize the fresh capital to enhance its marketing and sales efforts and support its growth initiatives.

Sabarinath U and Abhi Sinha, Co-Founders of Healspan, jointly expressed their enthusiasm about the fundraise, stating, “We are elated to announce Healspan’s seed fundraise—which is a testament to our growing credibility and growth focus. The capital raised through this seed round comes just at the right time, when we’ve already started riding upon the fast-track growth curve, and are attempting to grow exponentially in the months and years to come.’’

They also noted that a significant portion of these funds would be invested towards acquiring talent for building a robust sales team, launching their new line of products and tech innovations, expanding their hospitals’ network, and capturing a greater market share.

Hanuman Tripathi, Partner at Lead Angels, commented on the investment: “We at Lead Angels were quite impressed by Healspan for innovating a tech-led solution to minimize 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 leverage its growth potential amid the rising insurance penetration in this sector.”

Healspan has partnered with more than 50 hospitals across over 10 cities in India. By significantly reducing manual effort and insurance payment turnaround time, the startup enhances cashless claims management through advanced technology, improving the experience for both hospitals and patients.

Healspan’s Future Plans

Having consolidated its presence in North India, Healspan plans to expand into Eastern states over the next few months.

The startup has achieved an impressive 3x revenue growth in the last six months and aims for 10x year-on-year growth by the end of the current fiscal year, FY 2024-25, while targeting at least 200 hospitals across India.

To support its ambitious growth and expansion goals, Healspan intends to secure another round of funding by the end of next year.

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