Healthcare payments startup QubeHealth raises funding from Unicorn India Ventures, CanBank VC

  • Funding Announcement: Unicorn India Ventures and CanBank Venture Capital Fund have made an undisclosed investment in Mumbai-based healthcare payments startup QubeHealth as part of its pre-Series-A funding round.

  • Service Offerings: QubeHealth-Pay’s app enables users to manage healthcare expenses through multiple payment sources, providing instant cash-back discounts and access to medical financing for uninsured bills, primarily targeting employees from large corporations.

  • Growth and Future Plans: The startup has reported over 400% growth this year and aims to process over Rs 100 crore in healthcare payments by the end of the financial year. QubeHealth plans to use the new funding for technology enhancements and new features, targeting a $9 million raise in its upcoming Series A round.

  • Market Strategy: QubeHealth operates on a B2B2C model, distributing its healthcare payment solutions through employers, allowing employees and their families to efficiently manage healthcare expenses.

  • Investor Confidence: The investment partners expressed faith in QubeHealth’s growth potential and market fit, emphasizing the startup’s role in alleviating financial stress related to medical bills.

Deeptech-focused early-stage venture fund Unicorn India Ventures and CanBank Venture Capital Fund, from VI Fund “Empower India Fund” has made an undisclosed investment into the Mumbai-based healthcare payments startup, QubeHealth.

The investment is part of QubeHealth’s pre-Series-A funding round. 

What does QubeHealth do?

QubeHealth-Pay’s app helps Indians manage their family’s healthcare expenses by allowing payments through multiple funding sources at any hospital, clinic, doctor, or pharmacy.

The startup offers instant cash-back discounts on every bill and provides access to instant medical financing for bills not covered by health insurance.

It targets employees and their families from large Indian corporations such as Flipkart, Tata Teleservices, and 300 other employers. Companies subscribe to Qube’s healthcare payment products for their employees, usually as an add-on to the company group health insurance plan.

Purpose of fundraising 

QubeHealth said it will use the raised capital for further investment in technology and new feature launches like embedded insurance, genAI-led recommendation engine and a healthcare marketplace. 

“We are seeing massive growth, even though we are limited to the B2B-2C channel, for now. Employees of our Corporate Clients, are adding their family members, and are paying for their healthcare multiple times in a month, giving us deep insights about out-of-pocket healthcare spending in India,” said Chris George, Co-Founder & CEO of QubeHealth.

The startup plans to raise about $9 million in its upcoming Series A funding round at a valuation of Rs 270 crore.

“We look forward to leveraging the support and guidance of these two institutional investors, as we grow and prepare for our upcoming Series-A,” George added.

QubeHealth’s market presence

Qube claims to have seen over 400% growth this year, distributing its product exclusively through the B2B2C channel of employers, to their employees and their families.

The startup also claimed that it is on track to process over Rs 100 crore of healthcare payments by the end of this financial year.

Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, said, “At UIV, we have been an active investor in fintech and health-tech startups. Qube has successfully integrated the benefits of fintech with health related payments, providing a much needed solution for doctor visits and emergencies. It is no secret that medical bills that are not covered in insurance cause considerable financial stress among families.”

“We have seen Qube’s growth over the years and their product market fit has shown encouraging results. We believe combined with Chris’ deep understanding of the market gap and our well-proven investment thesis will help QubeHealth achieve faster growth before venturing out for Series A,” Majumdar added.

Started in 2016 by Bhaskar Majumdar and Anil Joshi, Unicorn India Ventures is a technology focused early-stage venture fund that invests capital in emerging and visionary startups. Unicorn India Ventures launched its first fund with a corpus of Rs 100 crore From its first


Here’s a summary of the relevant details regarding the investment in QubeHealth:

Funds

  1. Unicorn India Ventures
  2. CanBank Venture Capital Fund (from VI Fund “Empower India Fund”)

Investors

  • Unicorn India Ventures (represented by Bhaskar Majumdar)
  • CanBank Venture Capital Fund

Startup

  • QubeHealth

Founders

  • Chris George (Co-Founder & CEO)
  • Bhaskar Majumdar (Co-Founder of Unicorn India Ventures)
  • Anil Joshi (Co-Founder of Unicorn India Ventures)

Fundraise Series

  • Current Round: Pre-Series A
  • Up Next: Series A (targeting about $9 million at a valuation of Rs 270 crore)

Purpose of Fundraising

  • To invest in technology and new feature launches, including:
    • Embedded insurance
    • genAI-led recommendation engine
    • Healthcare marketplace

Market Insights

  • QubeHealth’s growth: Over 400% growth in the current year
  • Expected processing of over Rs 100 crore in healthcare payments by the end of the financial year.

Source link