The $4.8 Mn seed funding round was led by marquee names such as BEENEXT and 3one4 Capital
The startup will use the funding to further build its healthtech platform and scale up operations
Our efforts are driven towards leveraging our extensive experience to reduce complexity and administrative costs: CoverSelf cofounder Raghavendra Pawar
Healthtech startup CoverSelf has raised $4.8 Mn in a seed funding round led by BEENEXT and 3one4 Capital.
The startup will use the funding to further build its healthtech platform and scale up operations. The proceeds of the round will also go towards shoring up hiring across sales, product, and technology verticals. The startup will also use the investment to strengthen its presence across the US.
“…The payment models are becoming more complicated and the pace of change is increasing, creating additional challenges for stakeholders, who in turn are finding it more difficult than ever to understand the increasing complexity (of the claims accuracy and payment integrity sector). Our efforts are driven towards leveraging our extensive experience to reduce complexity and administrative costs by building a unified healthcare dedicated platform,” said CoverSelf cofounder Raghavendra Pawar.
Echoing the sentiment, managing partner at BEENEXT Dirk Van Quaquebeke said, “We are very excited to partner with team CoverSelf targeting the U$4.1 trillion US healthcare industry…We believe team CoverSelf has assembled a uniquely qualified team to abstract this away and improve healthcare outcomes at reduced prices for patients in the US.”
Founded in 2021 by Pawar and Rajasekhar Maddireddy, CoverSelf is a cloud native platform directly catering to the healthcare claims and payment integrity sector. The startup offers a collaborative and comprehensive Software-as-a-Service (SaaS) platform built specifically for healthcare claims and payment integrity.
The platform also allows healthcare companies to take the leap from legacy systems to customisable cloud solutions offered by CoverSelf. The startup ensures that the systems are continuously updated with all requisite regulatory nuances to ensure all billings are compliant with the ever evolving legal landscape.
In simple words, payment integrity systems deploy multiple mechanisms to ensure that healthcare claims are paid accurately.
“The current claims integrity systems are very complex, and the deployed technologies are antiquated…The cobbled-together software solutions result in scattered data and the inability to make real-time business decisions. Administrative complexity costs billions annually, an open and collaborative platform can significantly reduce the repetitive administrative costs,” added cofounder Maddireddy.
The funding announcement comes at a time when the SaaS healthcare segment is witnessing a surge in funding numbers and renewed interest by investors. The overall healthtech space saw an uptick in growth during the lockdown as people, wary of touch, looked for online alternatives ranging.
Now, the growth has percolated into the Indian SaaS healthcare systems. Homegrown startups have built a wide variety of products catering specifically for B2B clients in markets such as the US.
According to an Inc42 report, the Indian healthcare SaaS segment is projected to become a $3.5 Bn market opportunity by 2025. Growing at a three-year compounded annual growth rate (CAGR) of 45%, the space is expected to witness the highest growth rate with the larger healthtech arena.
In July, full stack clinic management platform Eka Care raised $15 Mn in Series A funding round led by Hummingbird Ventures. Last month, mental wellness focused startup Mojocare raised INR 160 Cr in a Series A funding round led by B Capital.
In June, physical therapy-focused omnichannel patient management platform Spry raised $7 Mn as part of its Series A funding round led by Eight Roads Ventures.