Insurtech Startup Kenko Health raises $12 million led by Sequoia Capital India & Others
The investment round included existing investors Beenext, Orios, 9Unicorns, and Waveform.
Beenext and Orios had previously invested $1.7 million in the company as part of its pre-Series A financing.
Kenko, founded in 2019 by Aniruddha Sen and Dhiraj Goel, is a subscription-based company that covers OPD and hospitalisation charges.
Kenko covers doctor visits, pharmaceutical expenditures, diagnostic tests, and more as part of its OPD coverage.
These were created for middle-income families in Tier II cities, where health insurance coverage is still scarce.
The funds will be used to attract clients, develop new products, and improve the startup's talent pool, according to a statement.
Monthly payments, rapid benefits, broad coverage, and competitive price, according to the company.
“The company is looking to add categories such as dental, mental health, at-home care, sexual health and many others to its OPD coverage,” it added.
Kenko Health currently has over 50,000 users in India and plans to add another 250,000 by the end of March 2022. Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, Nagpur, Indore, and Lucknow are among the 40 cities where it operates.
“The new funds will help us expand our channels and to ramp up growth in the coming months. We hope to add both affordability and accessibility to quality healthcare in India with our tech-enabled solutions,” Sen said.
Goel added that ever since the onset of the Covid-19 pandemic, “people have realised that the conventional health insurance packages remained unutilized… as they are not inclusive of OPD expenses.”
In India, 62 percent of healthcare expenses are paid out of pocket, compared to 11 percent in the United States and 36 percent in China.
“Kenko Health is at the forefront of this change by offering affordable all-inclusive healthcare subscription packages with a seamless tech-first claims process,” stated Abhishek Mohan, principal, Sequoia India.
With innovation in OPD and a creative view on health benefits settlement, Kenko has uncovered a significant white space in the healthcare finance market that has been disregarded by incumbents for years, according to Anup Jain, managing partner at Orios Venture Partners. "In a short amount of time, the founders have developed the business swiftly, and we expect them to achieve a substantial footprint in India within the next several years," Jain added.