Bangalore, Nov 29, 2016: Affordplan, a fintech startup based in Delhi, today announced that it has raised INR 20 Crores as part of its Series-A funding, led by Prime Venture Partners and Kalaari Capital as a co-investor. Affordplan is a financial product that empowers hospitals to improve access and affordability to medical services for its patients. The company is planning to use these funds to expand the current team, build the network and scale the business to new cities across India.
Affordplan is focused on making healthcare accessible and affordable through planned savings for non-emergency medical services. It enables hospitals to provide a tailored solution for patients to plan, save, and pay for their upcoming medical procedures. The solution is ideal for non-emergency procedures which can be planned for in advance such as pregnancy, eye care, dental, plastic surgeries, orthopedic, bariatric, and more. By doing so, Affordplan provides the hospitals with the visibility of future cash flows. This enables the hospital to deliver the prescribed treatment without any interruptions and also decreases incidences of refusing treatments to patients because of cash-flow issues.
Reports by IRDAI indicate that less than 20% of Indians have health insurance cover. Other statistics around the state of healthcare spends in India are equally shocking. More than 300 million Indians, earning between INR 2–10 lakh a year, struggle to get quality medical care. Liquidity constraints prevent a number of patients from paying a lump sum amount at the time of hospital admission. About 40-60% of patients turn away from private hospitals as a result. Currently there are limited solutions outside cash and around 70-80% Indians pay out of their pockets for healthcare expenses, one of the highest in the world. Reports suggest that these out of pocket payments towards medical needs are a major trigger for pushing people into poverty, especially for those in lower and middle-income groups.
As a solution to address this acute problem, Affordplan allows consumers to decide how much to save on a daily, weekly, or monthly basis - as per their chosen plan and then make regular payments at their convenience. They can do so via online payments, by depositing money at the hospitals during their visits, or by availing pickup services directly from the comfort of their home. In addition to having an easy way to save, consumers also receive discounts on medical bills and diagnostic services when they use Affordplan services bringing the overall treatment costs down by as much as 15-20%.
Founded by Tejbir Singh and Hemal Bhatt in December 2015, Affordplan has been piloting the service since May 2016. The startup now plans to launch a mobile app that has a hospital interface as well as a patient interface. The company raised INR 3 crores when selected as part of KStart’s first incubator batch in early 2016. Over the past year the company has onboarded several hospitals with several hundred patients. Affordplan is currently operational in the Delhi/NCR region with plans to expand to 3 other cities over the next 12 months.
“It is a very exciting time for us at Affordplan. We deeply believe in the need for widespread healthcare access and affordability in India. In less than a year we have been fortunate to partner with Prime Ventures and Kalaari Capital - two top tier investors with deep fintech and operational expertise. We have built a unique solution and are seeing excellent traction from hospitals and patients alike. Our goal is to build the best tech-led healthcare payments platform in India”
“As a fund we are focused on category creating companies, led by passionate entrepreneurs, that are using technology to solve fundamental problems. Affordplan directly fits into that bracket. Application of fintech in order to make healthcare more accessible and affordable is the need of the hour in India. Backed by an excellent founding team, we are excited about the possibilities which Affordplan will open for millions of Indians.”
“Kalaari is excited to continue our partnership with Tejbir and the Affordplan team. Hundreds of millions of Indians have serious working capital problems that hamper their ability to pay for even for planned hospital procedures. Hospitals in turn lose thousands of crores by turning away patients. We believe there is massive potential for Affordplan’s alternative finance platform to reshape health care access and affordability in India.”
“Private healthcare today is becoming expensive and new avenues of planning and paying for medical care are much needed. With Affordplan, our patients have benefited, as they don’t have to worry about upfront lump sum payments. More patients are able to afford the much needed treatment as the Affordplan solution is customised for the patient.”
Prime Venture Partners is a Bangalore-based seed fund led by serial entrepreneurs Shripati Acharya, Sanjay Swamy, and Amit Somani. The fund is focused on building disruptive product companies out of India, and addresses a much needed gap in the Indian startup ecosystem - by bringing a combination of first-hand entrepreneurial experience, operating expertise and meaningful capital. Prime Venture Partners’ portfolio includes exciting startups such as KredX, Maya, MoneyTap, NiYO, Ezetap, SmartOwner, Synup, HackerEarth, happay, Nimble Wireless, Vidgyor and ZipDial (acquired by Twitter). Website: www.primevp.in
Kalaari Capital is an early-stage, technology-focused venture capital firm with $650 million in assets under management. Since 2006, we have empowered visionary entrepreneurs building unique solutions that reshape the way Indians live, work, consume and transact. Along with capital, we focus on a long-term partnership with entrepreneurs to help unlock large value through disruptive innovation.