INDIA – Kenko Health, a direct-to-consumer (D2C) Health Management Organization (HMO) that provides a one-stop solution for healthcare needs, has raised US$12 million (approximately Rs 90 crore) in a Series A round led by Sequoia Capital India.

The Series A round also saw participation from Beenext, Orios, 9Unicorns and Waveform.

In collaboration with insurance companies, Kenko Health offers a subscription-based service that covers health expenses across OPD and hospitalization.

Kenko covers doctor visits, medication costs, diagnostic tests, and other costs as part of its outpatient department (OPD) coverage.

These are intended for middle-income households in Tier 2 cities who are not covered by standard health insurance plans through their employers or elsewhere.

According to the company, monthly payments, instant benefits, broad coverage, and competitive pricing have aided Kenko Health’s growth.

The increasing number of first-time health insurance buyers in the market states that people are looking for comprehensive health solutions and will not hesitate in buying it as long as it brings some real value and is well within their budget.”

Aniruddha Sen, Co-founder, Kenko Health.

Tweet

The funds will be used primarily to acquire customers, develop new products, and build a strong team. Kenko will expand its OPD coverage to include dental, mental health, at-home care, sexual health, and many other areas.

Sequoia India Principal Abhishek Mohan stated that managing health care expenses needs to be reimagined in India.

”Out of pocket settlement of healthcare expenses in India is as high as 62 per cent, compared to 11 per cent in the US and 36 per cent 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,” he added.

Kenko Health previously raised US$1.7 million in a pre-Series A round with co-lead investors BeeNext and Orios, as well as participation from 9Unicorns and Waveform Ventures.

Kenko Health, which was founded in 2019, claims to have already reached over 50,000 users across India and aims to reach 2.5 lakh (250, 000) new users by the end of March 2022 by providing these services to its members in over 40 cities across India.

Plans start at Rs 299 (US$3.98) per month for young singles and go up to Rs 1,999 (US$26.62) per month for families of four.

It also provides healthcare plans for large corporations, small and medium-sized enterprises (SMEs), individuals, and families.

Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE