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AffordPlan raises $10mn to enhance healthcare affordability

ANI  |  New Delhi [India] 

FinTech startup raised USD 10 million in Series B funding to accelerate affordability of services for the Indian masses.

has partnered with more than 300 hospitals in the country to make non-emergency procedures affordable and has already reached more than 100,000 patients.

In the next 12-18 months, the startup will focus on building a full stack of products for and deepening its corresponding distribution and supply chain capabilities.

With its savings-led product, offers a financial alternative that empowers hospitals and diagnostic centers to improve access and affordability of medical services for its patients. The Fintech startup allows for planned savings that are ideal for non-emergency medical and expensive procedures such as pregnancy, eye care, dental, plastic surgeries, orthopedic, bariatric, and more.

enables hospitals to provide a for patients to plan, save, and pay for their upcoming medical procedures. It also provides visibility of future cash flows and enables them to deliver the prescribed treatment without any interruptions due to cash-flow issues.

The current system of financing is characterised by high out-of-pocket payments. Reports suggest that Indian households are increasingly relying on their own income and using their savings to expenses. This holds true for both rural and urban households, who together contribute about 62 percent of the total costs through out-of-pocket payments at the time of This creates financial barriers to access services and many of those who access such services face financial catastrophe and impoverishment afterward.

Furthermore, over 7 percent of the population slips below the poverty line due to health expenditures, while 27 percent of hospitalised patients have had to sell their assets or borrow to their expenses, a survey recently noted. The data indicate that health payments push 60 million people below the poverty line, every year. On the other hand, the depth of coverage of by (both government and private) is very low and often only covers hospitalisation expenses.

As a solution to address this acute problem, is working towards reducing the burden of out-of-pocket expenses for patients and is making more accessible and affordable. It 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.

In addition to having an easy way to save, consumers also receive discounts on medical bills and when they use services, bringing the overall treatment costs down by as much as 15-20 percent.

The new funds will be used to meet the growing demand for its savings-based platform and to advance the countrywide adoption of in various hospitals. The company is also planning to launch new savings, lending, and to cover medical and expenses.

Also, the Delhi-based company is expanding rapidly and looking to hire more than 200 employees across by the end of 2018.

"The Indian sector is evolving to a state where patients will have multiple options for accessing from the public and private insurance schemes, and other initiatives. We have positioned at the intersection of finance, healthcare, and technology to bring financial innovation to We are well on our way to create the largest for in in India," said

On a related note, the current round of funding was led by and included, as a new investor, Omidyar Network, alongside existing and

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 17:50 IST