Even Healthcare has secured $50 million in a Series B round led by Khosla Ventures to expand its hospital network. The Bengaluru-based startup aims to scale its value-based care model, though it faces challenges with widening losses and recent workforce restructuring.
Bengaluru-based Even Healthcare has raised $50 million in a Series B funding round led by Khosla Ventures. The capital infusion pushes the company’s valuation to $300 million. Even Healthcare plans to use these funds to expand its footprint in Bengaluru, with aims to open five additional hospitals over the next six months.
Scaling the Value-Based Care Model
The company is attempting to change how Indian hospitals operate by shifting from a traditional fee-for-service model to value-based care. While typical hospitals often increase revenue through high-volume testing and extended patient stays, Even Healthcare operates on a system where doctors are paid fixed salaries. The company argues that this removes the financial incentive to recommend unnecessary procedures, aiming instead to improve patient outcomes. According to company data, this approach has led to an unplanned readmission rate of under 1%, compared to industry benchmarks of 8% to 15%, with patients spending roughly 40% less time in the hospital.
Financial Performance and Operational Costs
While the company has achieved operational profitability in its first two facilities, its overall financial picture reflects the high cost of scaling. Regulatory filings for fiscal 2025 show a net loss of ₹902 million on revenue of ₹272 million, a widening deficit compared to the previous year. To manage costs during this growth phase, the company recently implemented a workforce reduction in August, parting ways with approximately 350 employees.
Even Healthcare currently operates with a staff of 650 employees supporting a user base of about 250,000 members. The business model involves leasing real estate for 20-year terms, which allows the firm to focus its capital on clinical equipment and staff equity programs rather than property ownership. The next major monitorables for the company will be its ability to maintain clinical quality standards and operational efficiency as it expands its network from two to seven hospitals, and how it manages the balance between aggressive market share capture and its current burn rate.