Affordplan, a Delh-based fintech startup, today said it has raised Rs 20 crore, led by Prime Venture Partners and Kalaari Capital as a co-investor. It is a financial product that empowers hospitals to improve access and affordability to medical services for its patients.
The investments will be used to expand the current team with a predominant focus on sales, marketing, business development, and technology functions; to increase the network of hospitals on the platform; and to scale the business to newer geographies in India. The majority of funds will be channelized for taking the platform pan India. The target is to cover three more cities in coming 12 months.
Founded by former TaxiForSure senior executives Tejbir Singh and Hemal Bhatt in December 2015, Affordplan had raised Rs 3 crore when it was selected for Kalaari’s incubation programme KStart early this year. The firm was piloting its service since May and tied up with many hospitals in the National Capital Region.
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.
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.
The startup claims its solution is ideal for non-emergency procedures which can be planned for in advance, such as pregnancy, eye care, dental, plastic surgeries, orthopaedic, and bariatric.
In addition, 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 per cent.
Reports by Insurance Regulatory and Development Authority of India (IRDAI) indicate that less than 20 per cent of Indians have health insurance cover and 86 per cent of healthcare spend is out of pocket.
In 2015 alone, healthcare spend in India amounted to $150 billion.