Even Healthcare raises $50M Series B led by Khosla Ventures to build its own hospitals

Funding Details and Valuation

Even Healthcare has completed an all-equity Series B funding round, raising $50 million. Khosla Ventures led the investment, with Alpha Wave also participating. This latest round increases Even's total capital raised to more than $120 million. The company's valuation now stands at $300 million, which is triple its valuation from 18 months prior.

Addressing Hospital Economics in India

Even Healthcare aims to reform the financial incentives within India's hospital system. The startup notes that traditional hospitals often profit from additional tests, procedures, or extended patient stays, even when these may not be medically necessary. Even's model focuses on rewarding positive health outcomes rather than the volume of healthcare services provided, seeking to reduce unnecessary treatments and associated costs.

Shift to Operating Own Hospitals

Initially, Even partnered with existing hospitals to provide care for its members. However, the company observed instances where patients underwent unnecessary tests or surgeries. To address this, Even decided to build and operate its own hospitals, gaining greater control over patient care and cost management. This strategic shift is supported by Khosla Ventures, which has invested in Even since its seed round in 2021.

Expansion Plans

Even Healthcare has already opened two hospitals in Bengaluru, both of which achieved operational profitability within a year. The company plans to use the new funding to open five additional hospitals in Bengaluru over the next six months. Even leases hospital buildings under 20-year agreements and invests in fitting them out and acquiring medical equipment.