Care.fi, a Gurugram-based healthcare fintech, has secured US$8 million in a Series A funding round, which includes US$5 million in equity led by July Ventures and US$3 million in debt financing from Trifecta and Vivriti. The company specializes in developing AI-powered revenue cycle management (RCM) systems tailored for hospitals, enhancing processes such as claims processing, medical documentation, coding, and collections.
The Care.fi platform is already operational within the Ayushman Bharat initiative and other insurance programs throughout India. The recent funding will facilitate the company’s expansion into new cities across India as well as international markets, specifically the United States and the Middle East. This move aligns with Care.fi’s ambition to create a comprehensive global healthcare revenue platform focused on streamlining hospital billing while improving patient transparency.
Hospitals participating in the Ayushman Bharat PM-JAY scheme frequently encounter reimbursement delays, which can range from 30 to over 180 days. Such delays often create significant cash-flow challenges for these institutions; reports from Haryana indicate that more than 600 hospitals considered halting their services under the scheme due to these payment issues. Care.fi aims to mitigate these challenges by integrating hospital workflow software with embedded financial services.
With an NBFC license in hand, Care.fi has been able to lend directly to hospitals, disbursing over ₹800 crore in loans to more than 100 healthcare institutions. This financial support is particularly critical in an environment where timely funding can determine a hospital’s operational viability. Care.fi’s AI-driven platform not only integrates into hospital systems but also analyzes revenue cycle data, allowing for lending based on anticipated cash flows, thereby encouraging daily utilization of the system.
The company’s model has potential applicability beyond healthcare, potentially extending to sectors such as construction, logistics, and government contracting, which similarly experience slow payment cycles. As Care.fi embarks on this expansion trajectory, it has expressed aspirations to evolve into a healthcare-centric Small Finance Bank, broadening its services to encompass a wider array of banking solutions.
In an industry where timely reimbursement is vital for sustaining operational health, Care.fi’s innovative approach may play a significant role in alleviating financial strain on healthcare providers. The company’s focus on integrating financial services with operational efficiencies represents a pivotal shift in healthcare finance, one that could redefine how hospitals manage their revenue cycles. As Care.fi continues to develop its platform and expand its reach, its efforts may serve as a blueprint for other fintech companies seeking to enhance the financial health of healthcare institutions.
Source: Care.fi
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