HealthAssure raises $2.5mn Series A funding from Blume Ventures, eyes acquisitions

Primary healthcare services aggregator HealthAssure has raised $2.5 million (Rs 17 crore at the current exchange rate) in a Series A round of funding from early-stage investor Blume Ventures.

The company plans to invest the fresh funds on accelerating growth inorganically, HealthAssure founder and CEO Varun Gera told TechCircle.

“We are looking at a lot of growth over the next two years. We will be doing some acquisitions, and we will also be exploring the idea of incubating some companies. We are evaluating a number of healthtech companies in the areas of nutrition, fitness and other segments that can help us increase our engagement with customers,” Gera said in a telephonic interaction.

The company will also use the funds to strengthen its data capabilities by leveraging artificial intelligence and machine learning tools besides creating new products including insurance OPD products, the company said in a statement.

With this round, HealthAssure’s total fundraising has increased to $5 million. 

Founded in 2011, the company has tie-ups with hospitals, clinics, laboratories and doctors, besides partnerships with insurance companies to offer healthcare schemes for corporate employees.

HealthAssure claims to operate a network of 4,000 primary care centres across 1,100 cities offering services including dental, pediatric, ophthalmology and diagnostics across India, serving over 1.5 million customers. Nearly 75% of its revenue is from business-to-business operations.

“The company is building high quality consumer tech products to leverage their extensive offline network,” Sajid Fazalbhoy, part of the investment team at Blume, said. “Consumers who engage with the HealthAssure’s platform can be proactive about their health and not only be healthier but spend less on healthcare. Insurance company partners can hugely benefit from partnering with HealthAssure as their claims ratios will reduce if customers are not reactive about health." 

HealthAssure’s client base includes companies like ICICI Prudential, Deloitte, Cigna, Max Bupa, Yahoo and Aditya Birla.

In its previous funding round, HealthAssure raised $1 million in a pre-Series A round from human resource ventures-focused private investment firm The HR Fund.

Mumbai-based Blume Ventures was founded in 2010 by Karthik Reddy and Sanjay Nath. Some of its most recent investments include deep-tech manufacturing startup Ethereal Machines software-as-a-service marketplace Skillenza and logistics tech startup Locus.