In a recently completed pre-seed funding round, Bangalore-based insurance technology firm Healspan raised Rs. 1.2 crore under the direction of startup community-builder and accelerator PedalStart.
Healspan has raised a total of Rs. 1.7 Cr in capital through strategic fundraising efforts since its founding in 2022, even though this is the startup's first institutional fundraising round.
Healspan has already assisted more than 60 hospitals around India in effectively handling the paperwork, inquiries, processing, and other crucial elements associated with cashless health insurance claims with the use of its ground-breaking claims filing and tracking software.
The company intends to leverage the recently obtained pre-seed money to further its technological capabilities, recruitment of skilled personnel, and overall business operations and expansion.
Additionally, the money raised in this round will be crucial for expanding and extending Healspan's customer base as well as increasing subscriptions and earnings.
“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”, said Sabarinath U and Mr. Abhi Sinha, Co-Founders of Healspan.
“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”, commented Manas Pal and Aditya Darolia, Co-founders of 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”.
Healspan has seen a 4x rise in revenue over the last four months due to PedalStart's continued support. The company has also been actively concentrating on bringing in new revenue sources and paying customers. The startup has already made a significant impact in a number of metropolises and tier 1 cities, including Bengaluru, Chennai, Hyderabad, Delhi-NCR, Mumbai, and others. By the end of 2025, they hope to have expanded to at least a few more sites around India, serving at least a thousand hospitals.
The startup's primary focus going forward will continue to be on making cashless claim submission and tracking simple, painless, and effortless for both hospitals and patients. Long term, though, Healspan hopes to be able to serve more users than only those in the healthcare sector and will work to address a number of issues that stakeholders in the financial and insurance industries are facing.