Mohali-based Vitraya Technologies has raised $5 million from a Series A round led by B2B venture capital fund StartupXSeed. The funding round also saw participation from Season Two Ventures, Cactus, Xceedance and the family office of Mankind Pharma.
Vitraya will use the funds to hire skilled employees, scale its global business development and augment its existing technology.
Health insurance, the largest segment in the Indian insurance market, accounts for Rs 75000 crores in premiums and is growing at 25 per cent annually. Health insurers typically incur Rs 10000 crore in operating costs and lose an additional Rs 5000 to Rs 10000 crore to fraud and errors.
Insurance in India is underpenetrated and is growing rapidly. However, over 95 per cent of the insurance workflows are manually driven and are not scalable.
Mrinal Sinha, ex-COO of Mobiwik and founder of Vitraya Technologies, led a team to develop AI-based technology that underwrites and makes claims decisions faster, ensuring that hospitals secure their cash settlements immediately from insurers upon discharge.
Vitraya Technologies' platform promises to offer instant claim approval and real-time settlement, improved revenue cycle and zero delay in account receivables. This lowers administration costs due to zero documentation and disallowance and helps insurers streamline their work and help with scalability.
Commenting on securing the funds, Sinha 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.”
She added that the company has scaled to 4000 large and mid-size hospitals within a year of its launch. StartupXseed's Investment will further open doors for it in the Indian healthcare and insurance ecosystem and help with its global expansion plans.
Ravi Thakur, co-founding partner at StartupXseed, noted, "Despite the rapid growth of insurance in India, customer orientation and empathy are sore points, particularly in health insurance. Vitraya's revolutionary technology that settles claims within 1-millionth of a second transforms the health insurance customer experience."
The AI-enabled blockchain technology used in Vitraya ensures the data security of the hospital, patient and policy issuers by securing all ends of the data in private blocks where stakeholders can interact safely and hassle-free. Indian health insurance companies like STAR, Niva Bupa and CARE Health Insurance currently use this technology.
