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Healthtech startup Even Healthcare raises $50 Mn to expand its hospital network

Indian healthcare startup Even Healthcare has raised $50 million in a Series B funding round led by Khosla Ventures as it seeks to transform hospital economics and the way doctors receive compensation in India.

The all-equity funding round also attracted participation from Alpha Wave and valued the company at $300 million, triple its valuation 18 months ago, according to Even. With this investment, the startup’s total funding has crossed $120 million.

Traditionally, hospitals in India generate higher revenues when patients undergo additional tests, procedures, or extended hospital stays, even when such interventions may not be medically necessary. However, Even Healthcare aims to shift this model towards patient outcomes by prioritising appropriate treatment over procedures that unnecessarily increase medical bills.

This approach has continued to attract Khosla Ventures, which first invested in Even during its seed round in 2021. The Silicon Valley venture capital firm is increasing its commitment as the startup begins building and operating its own hospitals, allowing it to exercise greater control over patient care, treatment decisions, and costs.

Vinod Khosla, founder of Khosla Ventures, said Even’s model addresses the fragmented healthcare system by integrating financing, technology, and care delivery. In a prepared statement, he explained that the objective is to reward improved health outcomes rather than greater utilisation of healthcare services.

“The clinical and economic results so far give us conviction that this can become an important new model for healthcare in India and beyond,” Khosla said.

Initially, Even relied on partner hospitals to provide treatment to its members. However, Mayank Banerjee, who founded the startup in 2021 alongside Matilde Giglio and Alessandro Ialongo, said the company began reconsidering this approach after discovering cases in which patients underwent tests or received surgery recommendations that it considered unnecessary.

“We think patients are getting not only a bad experience, but insurers are getting a bad economic deal. And as a result, we decided to fix it by building our own hospitals,” Banerjee told.

Since then, Even has opened two hospitals in Bengaluru, both of which achieved operational profitability, excluding depreciation, within their first year. The startup plans to open five additional hospitals in the southern Indian city over the next six months, using its latest funding round to support the expansion.

Banerjee said Even leases hospital buildings under 20-year agreements and invests in fitting out the facilities and purchasing medical equipment.

Unlike traditional hospital models, where doctors may face financial incentives to recommend additional procedures, Even pays its doctors fixed salaries that are not linked to the number of tests or surgeries they perform. However, doctors can earn bonuses based on clinical outcomes reported by patients, Banerjee said.

The company applies the same principle to hospital management, ensuring that compensation does not depend on procedure volumes. Instead, managers receive fixed salaries and company-wide incentives, while marketing teams focus on attracting patients rather than maximising the revenue generated by each patient. Furthermore, every employee, including doctors and other hospital staff, receives equity in Even. This structure aims to align employees with the startup’s long-term performance rather than incentivise higher medical spending.

Most of Even’s revenue comes directly from patients paying for treatment, according to Banerjee. The company also earns revenue through partnerships with insurers. Additionally, it is working with insurance partners on a model that could compensate Even for hospitalisations it helps prevent, rather than reward, the delivery of more treatments.

To measure treatment effectiveness, Even tracks patient recovery using established clinical scoring systems. For example, it uses the Oxford Knee Score to assess pain and mobility following knee replacement surgery. The startup publishes its results on its website alongside figures from other healthcare systems to enable comparisons.

Even reports an unplanned hospital readmission rate of less than 1%, compared with an industry benchmark of 8% to 15%. It also claims that patients spend 40% less time in hospital and that its model has generated savings of more than ₹500 million, or approximately $5.27 million, for insurers.

Jai Sajnani, a partner at Khosla Ventures, said the early performance of Even’s hospitals played a key role in the firm’s decision to lead the funding round. “We look forward to helping the Even team put quality care within reach of every family in Bengaluru and across India,” he said.

Despite these developments, Even continues to report financial losses. Regulatory filings show that the startup recorded a net loss of ₹902 million, or approximately $9.50 million, in fiscal 2025, nearly 25% higher than the previous year. During the same period, it generated revenue of ₹272 million, equivalent to about $2.86 million.

In August, the company also laid off approximately 350 employees, according to Indian startup-news website Entrackr. Banerjee acknowledged the restructuring and described it as a difficult decision. He said the affected employees received severance payments, extended health insurance coverage, and accelerated equity vesting.

Even currently employs approximately 650 people, including around 300 full-time doctors. Since launching in 2021, the startup has built a membership base of approximately 250,000 and recorded more than 750,000 patient interactions, including consultations, diagnostic tests, and surgeries, Banerjee said.

Banerjee added that Even could achieve profitability within months if it halted expansion spending. However, the company intends to prioritise growth and serve more patients. He declined to specify when the startup expects to become profitable.

“Right now, we’re investing in growth and serving more patients,” Banerjee said.

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