Khosla Ventures doubles down on Even Healthcare to problem India’s hospital economics

Even Healthcare has raised $50 million in a funding spherical led by Khosla Ventures, because the Indian startup seeks to alter how hospitals within the planet’s most populous nation become profitable and the way medical doctors are rewarded.

The all-equity Series B spherical additionally noticed participation from Alpha Wave and valued it at $300 million, triple its valuation 18 months in the past, based on Even. The newest funding brings Even’s complete capital raised to greater than $120 million.

Hospitals in India sometimes earn extra when sufferers endure extra exams, procedures, or longer stays, even when they might not want them. Even needs to alter that by specializing in affected person care moderately than pushing pointless remedies that drive up medical payments.

That method has continued to enchantment to Khosla Ventures, which has invested in Even since its seed round in 2021. The Silicon Valley enterprise agency is doubling down as Even strikes to construct and function hospitals of its personal, giving it higher management over affected person care and prices.

Vinod Khosla, founding father of Khosla Ventures, mentioned Even’s method goes past fixing particular person elements of a fragmented healthcare system by bringing financing, know-how, and care supply collectively. The objective, he mentioned in a ready assertion, is to reward higher well being outcomes moderately than higher use of healthcare providers.

“The scientific and financial outcomes to this point give us conviction that this will grow to be an vital new mannequin for healthcare in India and past,” Khosla mentioned.

Initially, Even relied on partner hospitals to deal with its members, however Mayank Banerjee, who based the startup in 2021 with Matilde Giglio and Alessandro Ialongo, mentioned in an interview that the startup started questioning that mannequin after discovering that sufferers had undergone exams or been advisable surgical procedures it thought-about pointless.

“We assume sufferers are getting not solely a nasty expertise, however insurers are getting a nasty financial deal. And because of this, we determined to repair it by constructing our personal hospitals,” Banerjee informed TechCrunch.

Even has since opened two hospitals in Bengaluru, each of which reached operational profitability, excluding depreciation, inside a yr of opening, Banerjee acknowledged. The startup plans to open 5 extra hospitals within the southern Indian metropolis over the following six months, funded by its newest spherical.

Banerjee informed TechCrunch that Even leases hospital buildings on 20-year agreements and spends on becoming them out and shopping for medical gear.

Unlike hospitals the place medical doctors might have monetary incentives to advocate extra procedures, Even pays its medical doctors fastened salaries — not tying their compensation to the variety of exams or surgical procedures they carry out, although Banerjee mentioned medical doctors can earn bonuses primarily based on patient-reported scientific outcomes.

The identical precept extends to hospital administration, whose compensation just isn’t linked to the variety of procedures carried out, Banerjee informed TechCrunch. Managers, he mentioned, obtain salaries and company-wide incentives, whereas advertising and marketing groups give attention to bringing in sufferers as a substitute of the turnover these sufferers generate. Moreover, each worker, together with medical doctors and different hospital employees, receives fairness in Even. The thought is to present staff a stake within the startup’s long-term efficiency, to not reward them for producing extra medical payments.

Most of Even’s turnover comes from sufferers paying for therapy, Banerjee mentioned. The startup additionally generates turnover via its relationships with insurers. It can be working with insurer companions on a mannequin that would compensate it for hospitalizations it helps stop, not merely for offering extra therapy.

Banerjee informed TechCrunch that Even tracks how sufferers get better after therapy utilizing established medical scoring programs. In the case of knee replacements, as an illustration, it makes use of the Oxford Knee Score to measure ache and mobility. The startup publishes outcomes on its website, alongside figures from different healthcare programs for comparability.

Even says its hospitals have an unplanned readmission fee of lower than 1%, in contrast with an business benchmark of 8% to fifteen%. Furthermore, it claims sufferers spend 40% much less time within the hospital and that its method has saved insurers greater than ₹500 million (about $5.27 million).

Jai Sajnani, a accomplice at Khosla Ventures, informed TechCrunch that the early efficiency of Even’s hospitals was a key cause the agency led the spherical. “We sit up for serving to the Even staff put high quality care inside attain of each household in Bengaluru and throughout India,” he mentioned.

Even continues to be shedding cash, although. The startup posted a web lack of ₹902 million (about $9.50 million) in fiscal 2025, almost 25% greater than the earlier yr, on turnover of ₹272 million (about $2.86 million), regulatory filings present.

In August, Even additionally laid off about 350 employees, based on Indian startup-news web site Entrackr. Banerjee acknowledged the restructuring and referred to as it a tough resolution. He mentioned the affected staff acquired severance, prolonged medical insurance, and accelerated fairness vesting.

Even at present employs about 650 folks, together with round 300 medical doctors full-time. The startup has about 250,000 members and has recorded greater than 750,000 affected person interactions since its launch in 2021, together with consultations, diagnostic exams, and surgical procedures, Banerjee mentioned.

Banerjee informed TechCrunch that Even might flip worthwhile inside months if it stopped spending on growth, however the startup is selecting to develop as a substitute. He declined to say when the startup expects to grow to be worthwhile.

“Right now, we’re investing in development and serving extra sufferers,” Banerjee mentioned.