CoverSelf Gets $8.2 Mn From BEENEXT, 3one4 To Streamline Healthcare Claims & Payments

Healthcare focussed fintech platform CoverSelf has secured $8.2 Mn in a seed funding round co-led by its existing investors 3one4 Capital and BEENEXT. 

The round also saw participation from new investors, including Z21 Ventures and other healthcare leaders.

The startup said it will deploy the fresh proceeds to grow operations, build generative AI capabilities and increase its headcount across sales and marketing. 

Founded in 2021 by Rajasekhar Maddireddy and Raghavendra Pawar, US-based CoverSelf has created a collaborative SaaS platform to simplify and streamline healthcare claims and payments.

Commenting on the current healthcare claims ecosystem, CoverSelf’s cofounder Maddireddy said, “The current claims integrity systems are very complex and the deployed technologies are antiquated. Significant software innovation is needed to address the broken system that is currently creating out-of-control healthcare costs and waste.”

He further added that the cobbled-together software solutions result in scattered data and the inability to make real-time business decisions. To address such complexities, administrative costs cross billions annually. Thus, an open and collaborative platform may significantly help reduce repetitive administrative costs, Maddireddy said. 

CoverSelf aims to democratise healthcare claims and payment integrity through its platform which empowers payment integrity teams in health insurance companies to transparently resolve the claims with hospitals and medical practices. CoverSelf said that its platform uses multiple approaches to reduce administrative costs while identifying new savings opportunities. 

Last year, the startup secured $4.8 Mn from BEENEXT and 3one4 Capital to scale up its operations as well as to expand its sales, product and technology teams. CoverSelf said that some of the funds would also go towards hiring across sales, product and technology verticals. 

Fintech startups focused on healthcare have been gaining traction from investors for quite some time now.

For example, in September, healthcare-focused fintech startup QubeHealth secured an undisclosed amount of funding from Inflection Point Ventures, Green Ivy Ventures and other family investment offices for its runway of up to two years. The funding would also enable the startup to prepare for the upcoming Series A round. 

The IMARC Group found in a study that the Indian medical insurance market size reached $120.1 Bn in 2022. It is expected to reach $ 219.1 Bn by 2028 at a 10.64% CAGR.