Khosla Ventures has led a $50 million all-equity Series B round in Even Healthcare, an Indian hospital operator, valuing the Bengaluru-based company at $300 million, triple its valuation 18 months ago, according to TechCrunch, which reported the deal on October 19. Alpha Wave also participated. The round brings Even's total funding to more than $120 million since Khosla backed its 2021 seed round; earlier Indian press reports had described the raise as in progress at a similar size and valuation before it closed.
Even Healthcare, founded in 2021 by Mayank Banerjee, Matilde Giglio, and Alessandro Ialongo, began by partnering with existing hospitals but now leases buildings on 20-year agreements and builds and runs its own facilities. It operates two hospitals in Bengaluru, both of which reportedly turned operationally profitable, before depreciation, within a year of opening, and plans five more there over the next six months using proceeds from this round. The company says it serves about 250,000 members and has logged more than 750,000 patient interactions since launch, with roughly 650 employees including some 300 full-time doctors.
A different incentive structure
Even's pitch rests on paying doctors fixed salaries with bonuses tied to patient-reported outcomes rather than the volume of tests or procedures performed, a contrast with a broader Indian hospital sector in which facilities often earn more the more care, including unnecessary care, a patient receives. Managers are paid on company-wide incentives rather than per-procedure bonuses, and every employee, including doctors, holds equity. The company says its unplanned readmission rate is below 1%, against an industry benchmark of 8% to 15%, and that patients spend 40% less time hospitalized, tracked with standard clinical scoring tools such as the Oxford Knee Score. It is also discussing a model with insurers that would pay the company for hospitalizations it prevents rather than ones it performs.
The company reported a net loss of ₹902 million, about $9.5 million, in its last fiscal year, up roughly 25% from the year before, on revenue of ₹272 million, about $2.9 million, and laid off about 350 employees in August.
The clinical and economic results so far give us conviction that this can become an important new model.
Vinod Khosla, founder, Khosla Ventures
Banerjee said the company could reach profitability within months by halting expansion but is choosing to keep growing instead, without giving a specific timeline.