Delhi-based HealthCRED provides loans to India’s hospitals, clinics, insurance providers, medical equipment buyers and other health services players.
“The healthcare ecosystem faces a significant working capital gap, particularly impacting small to mid-sized hospitals with limited capital access and claims management capabilities,” said Nitin Sharma of Antler India, which led HealthCRED’s $1.2 million seed round. That gap could widen as more consumers in the world’s most populous country obtain health insurance policies.
To mitigate the issue, the healthcare financing startup provides “cashless claim financing,” allowing health facilities to offer care before insurance companies settle the payments. It also provides supply chain and infrastructure financing, and advances loans to clinics and doctors to expand their services and facilities.
By providing financing to hospitals on behalf of insurers, HealthCRED allows insurers to maintain their cash flow positions while ensuring hospitals have working capital. Antler India says that HealthCRED aims to become India’s first healthcare-focused small finance bank, a niche type of bank that provides basic banking services to underserved communities.
Healthcare demand
Demand in India for healthcare services is growing because of the prevalence of chronic diseases like diabetes, an expanding middle class and medical tourism. Small and mid-sized hospitals make up the majority of India’s healthcare infrastructure.
HealthCRED’s early funding round will support expansion into India’s southern and western regions.
Singapore’s TRTL, iSeedVC, AngelList India, DeVc and a number of angel investors invested in the round.
