Mumbai-based QubeHealth, a startup focused on healthcare payments, is in discussions to raise between $6 million and $9 million in a Series A round over the next three to four months. The funding is expected to come from a Japanese fund, a Singaporean fund, and existing investors such as Inflection Point Ventures, Keiretsu Forum, Axiomatic Ventures, New Horizon Ventures, Mohit Burman (Chairman of Dabur India), and other family offices, as per sources familiar with the matter.
A significant portion of the new capital is intended to enhance QubeHealth’s artificial intelligence (AI) capabilities, particularly in predictive spend pattern analysis. The startup also plans to strengthen its financial security layer. Additionally, QubeHealth will develop an online healthcare marketplace within its app, featuring hospitals, clinics, pharmacies, and diagnostic centers across cities and neighborhoods.
Following this funding round, QubeHealth’s valuation is expected to double to Rs 400 crore. This comes shortly after the startup’s pre-Series A top-up round of Rs 25 crore, which was reportedly conducted at a valuation of Rs 200 crore.
Founded in 2020 by Chris George and Gagan Kapur, QubeHealth operates as a B2B startup offering two main products: Qube Pay, a UPI-based payments feature providing up to 10% cashback on transactions, and Qube Cash, a healthcare credit line offering up to Rs 10 lakh in no-cost EMIs for up to 12 months. The credit line extends to healthcare services such as eye care, dental care, skin care, and even pet care, which are not typically covered by regular group health insurance.
Employees can use this credit line to pay for these services and convert them into no-cost EMIs over 1-12 months. They can also use the money to settle hospital bills upfront, which QubeHealth can later reconcile with the insurance reimbursement.
Employers or corporate partners can include QubeHealth’s offerings as an add-on benefit to the insurance policy for a subscription fee of Rs 720 per employee per year.
In 2024, QubeHealth plans to disburse Rs 50 crore in medical credit. The credit amount offered starts at Rs 30,000 and depends on the employee’s credit score, salary range, and employer. QubeHealth has partnered with over 300 corporates, covering approximately 150,000 employees and their families, and has a network of 12,000 hospitals and clinics. Corporate partners include Swiggy, ITC Hotels, Upstox, Reserve Bank of India, Zenoti, Financepeer, Prism Johnson, and SBI Life, among others.
Both products have been in the market for over a year, with the app attracting 30,000 monthly active users. This figure is growing at around 40% month-on-month, according to one of the sources.
Data from Tracxn indicates that QubeHealth generated Rs 8.5 crore in revenue from operations in FY23, representing a 17.9% year-on-year growth. Losses for the same period increased by 44.6% year-on-year to Rs 4.58 crore.
