[Funding alert] API startup MedPay raises $ 1.2M from UK-based EF and GrowX Ventures
API platform startup MedPay has raised $1.2 million in seed funding from UK-based Talent Investor Entrepreneur First (EF) and GrowX Ventures.
Founded by Arun Bhatia and Ravi Chandra in April 2020, MedPay is a technology startup that links primary healthcare centres to a cashless OPD insurance network. MedPay Connected Care Network (CCN) of clinics, pharmacies and diagnostic centres enable healthcare centres to accept insurance payments in real-time and facilitate a cashless claims process for the insured.
The company will utilise the investment to serve increasing demand, as well as expand its existing product offerings.
Ravi Chandra, Co-founder and CEO of MedPay said,
“There is an immense need for OPD insurance in India. IRDAI, the regulatory body, is encouraging insurers to cover OPD and most insurers are experimenting with a variety of OPD insurance products. We as a disruptor in this space are empowering insurers by giving them access to a large OPD network with a cashless claims facility. Thus, also enabling stand-alone Clinics, Pharmacies and Labs with ability to accept insurance payments without friction.”
Today, MedPay CCN has access to more than 50,000 health centres spread across 450 cities covering 4000+ pin codes. The company claims that MedPay’s (API) approach and CCN will address the gap and help connect these pharmacies with other stakeholders thus bringing them into the digital economy.
“MedPay is a truly disruptive InsureTech / HealthTech startup. We have seen Fintech unicorns propelled by UPI and the India Stack. MedPay benefits from the same; in addition, as a first mover in this space, it is poised for similar success propelled by UHI (Universal Health Interface), the Health Stack and the National Digital Health Mission,” said Venkat Raju, Venture Partner at Entrepreneur First
Multiple players can avail of MedPay Connected Care Network’s API-as-a-Service to offer their services - insurance companies to offer OPD cashless services; corporates & online platforms for hyperlocal care delivery and so on. MedPay said that it does not compete with e-pharmacy companies. Unlike chronic patients, acute patients generally look for short turnaround time in medicine delivery that is ideally achieved by a nearby pharmacy. In fact, “e-pharmacy players can also use MedPay APIs to cater to the needs of acute patients.” said Ravi Chandra.
The company said in its statement that during these Covid times, MedPay has grown rapidly by enabling the unorganised OPD segment to transact digitally with customers in their neighbourhoods. Stand-alone pharmacies have benefited immensely through digital processing of medicine orders during lockdowns. MedPay has processed total OPD transactional payment volume of more than Rs 14 crore.
"One of the key drivers of low adoption of health insurance in India is lack of an organised and large primary healthcare (PHC) network. MedPay is leveraging tech to build India’s largest PHC network that at one end, will allow patients to access and consume services frictionlessly and at the other, allow business and insurers to leverage a reliable, diverse and pan-India network to acquire new customer segments and significantly lower cost per transaction," said Manu Rikhye, Partner at GrowX Ventures.