Khosla Ventures Backs Even's $5M Seed for Indian Healthcare

Addressing Healthcare Gaps in India

The recent global pandemic brought to light significant shortcomings and inconsistencies within healthcare systems worldwide. The founders of Even – Mayank Banerjee, Matilde Giglio, and Alessandro Ialongo – point to India as a prime example, particularly following the reported surpassing of 4 million COVID-related deaths.

Securing Seed Funding

The Bangalore-based company has successfully secured $5 million in seed funding. This investment round was spearheaded by Khosla Ventures, with additional participation from Founders Fund, Lachy Groom, and several individual investors.

These investors include prominent figures such as Nikesh Arora, CEO of Palo Alto Networks; Kunal Shah, CEO of CRED; Nithin Kamath, founder of Zerodha; and Tom Stafford, a partner at DST Global.

Even’s Mission: Accessible Primary Care

Even operates as a healthcare membership company focused on providing coverage that is often absent in traditional Indian insurance plans. Its core aim is to make access to primary care physicians as straightforward and convenient as it is in many other developed nations.

The Indian Healthcare Landscape

Banerjee, having grown up in India, draws parallels between the Indian and U.S. healthcare systems, noting the presence of both government-run and private hospitals in both countries. However, a key distinction lies in the relatively recent emergence of private health insurance in India.

He estimates that less than 5% of the population currently holds private health insurance. Furthermore, even among those insured, coverage typically extends primarily to accidents and emergency situations.

Limitations of Existing Insurance Policies

Routine primary care visits, diagnostic testing, and scans are frequently excluded from these policies. The complexity of these insurance plans often leads to policyholders being unaware of their limited coverage until they encounter a medical expense, as Ialongo explains.

This lack of clarity has, in some instances, prompted individuals to seek hospital admission solely to ensure their medical bills are covered.

Origins of Even

Banerjee and Giglio initially observed the intricacies of health insurance while operating a different startup. They discovered that approximately 50 million Indians are pushed into poverty annually, often due to an inability to afford healthcare costs.

Their research into the insurance industry and discussions with hospital administrators revealed a significant issue: a misalignment of incentives, resulting in hospitals frequently overcharging and overtreating patients.

A Kaiser Permanente-Inspired Model

To address this, Even is adopting a model similar to that of Kaiser Permanente. By functioning as a healthcare service provider, the company aims to reduce the overall cost of care.

Launch and Growth

Even began operations in February and officially launched in June. Currently, the company has a waitlist exceeding 5,000 individuals and is preparing for a broader launch in the fourth quarter of this year.

The annual health membership will cost approximately $200 for individuals aged 18 to 35, providing comprehensive coverage including unlimited consultations with primary care doctors and access to diagnostic services and scans. This membership will remain in effect as the member ages, according to Ialongo.

Future Plans

The newly acquired funding will be allocated to expanding the operational team, enhancing the product, and integrating with hospital networks. Even has already established partnerships with 100 hospitals.

A collaboration with Narayana Hospital facilitated the administration of over 2,000 COVID vaccinations, with a second round of vaccinations already underway.

Long-Term Vision

“Scaling will require time,” Banerjee acknowledges. “Our strategy centers on leveraging improved pricing to offer a more affordable solution than existing options. We aspire to provide coverage for those underserved by the government and contribute to positive changes in healthcare statistics.”