Mohali-based claims settlement platform Vitraya Technologies has raised $5 million in a Series A funding round led by StartupXSeed.
Season Two Ventures, Cactus, Xceedance and the family office of Mankind Pharma also participated in this round.
The funds raised will be used for hiring skilled resources, global business development, and scaling existing products and technology.
Founded in 2019, the company uses AI-enabled blockchain technology to provide data in 1-millionth of a second, ensuring that hospitals secure their cash settlements immediately from insurers upon discharge.
The platform is being used by 4,000 large and mid-sized hospitals and Indian health insurance leaders like STAR, Niva Bupa, CARE Health Insurance and others. Health insurance is the largest segment in the Indian insurance market and is growing at 25% annually, but over 95% of the insurance workflows are manually driven and are not scalable.
Mrinal Sinha, CEO, Vitraya, said, “Insurance claims are a global problem, and the health insurance market loses trillions of dollars to claim processing costs and fraud. The US alone accounts for $350 billion in claim processing costs. Having faced deep trouble with claim settlement, we developed the Vitraya platform to connect hospitals, insurers, clinics and patients on a single platform facilitating faster claim settlements and payout, easy fraud detection and reduced operational costs.”
The Indian health insurance market is the largest segment in the insurance industry with premiums of INR 75,000 crore and a growth rate of 25% annually. Health insurers face high operating costs of Rs. 10K crore and lose INR 5,000 to 10,000 crores due to frauds and errors. The insurance industry in India is growing rapidly but is mostly manually driven and not scalable. Vitraya’s platform offers instant claim approval and real-time settlement, improves revenue cycle, eliminates delays in account receivables, reduces administration costs, and can help insurers streamline their work and achieve scalability.