AI-Backed Healthtech Startup HiLabs Bags $39 Mn Series B Funding

The latest infusion of funds will support HiLabs in continued enhancement of the technology, recruitment of top-tier talent, and expansion of its product teams.

HiLabs, a prominent provider of AI-powered solutions designed to manage and unlock the potential of dirty data in healthcare, has bagged a whopping $39 million Series B financing round.

The funding round led by Denali Growth Partners and Eight Roads Ventures saw participation from F-Prime Capital as well.

The latest infusion of funds will support continued enhancement of the technology as well as recruitment of top-tier talent and expansion of its product teams.

Commenting on the funding round, Amit Garg, cofounder, and CEO of HiLabs, emphasized the importance of timely and high-quality data exchange in reducing care costs and improving outcomes.

"We stand poised to propel our AI-technology forward, empowering healthcare organizations to make swift, informed decisions based on data that's not just clean, but readily available when it matters most," Garg said.

HiLabs’ Journey So Far

Established in 2014, HiLabs focuses on providing timely access to clean data for payers, providers, and patients as data-driven decision-making becomes crucial for health systems.

The AI-powered solution providers’ offerings include cloud-based MCheck platform, which specializes in ingesting, cleansing, and enriching critical healthcare information.

This helps to reduce operational costs and improvements in patient outcomes, the statement reads.

HiLabs says its platform currently supports some of the largest health insurance companies in the US. Its provider directory management solution analyzes data from over 80% of the country's healthcare providers.

With the latest funding, the total capital raised by HiLabs so far amounts to $41 million. This includes a seed round of $250,000 in 2017 raised from Season Two Ventures. 

Investors’ Speak

Dr Prem Pavoor, senior partner at Eight Roads Ventures, praised HiLabs' vision, product suite, and strong customer traction.

He said, “Payors are increasingly looking for innovative technology solutions to make complex and disparate healthcare data actionable. The HiLabs team really impressed us with their vision, best-in-class product suite and strong customer traction, which is testament to their product-market fit."

Similarly, Jesse Lane, founder and managing member of Denali Growth Partners, commended HiLabs' real-world impact in addressing critical data issues within healthcare.

"While many discuss the potential of AI, particularly in the healthcare ecosystem, HiLabs is demonstrating real-world impact by leveraging advanced AI techniques to ingest and cleanse data for four (4) of the nation's top ten health payers, along with numerous regional players," Lane added.

Carl Byers, partner at F-Prime Capital and former CFO of athenahealth also lauded HiLabs' AI-driven approach to data management, emphasizing its potential to drive transformational change among payers and providers by leveraging real-time data to improve user experiences, cost, and value.

Ten years ago, cofounders Amit Garg and Dr Neel Butala began their journey at Yale University in the US with a small team of interns and two full-time employees based in India.

Led by Garg, HiLabs laid the foundation for AI and machine learning R&D hubs in Pune and Bengaluru.

Recent Healthcare Funding

Recently, several healthcare-focused startups have bagged significant funding. Bengaluru-based healthtech startup Sugar.fit has secured an additional $5 million (approximately INR 41 Cr) as part of its extended Series A funding round, with B Capital leading the investment.

Similarly, last week healthcare screening technology provider Cardiotrack has secured $2 million in Pre-Series A funding, led by angel investor Girish Narasimhan and a group of investors.

Last month, IIT-Bombay-backed healthtech startup Neodocs has raised $2 million (16.6 Cr) in a seed funding round led by Omidyar Network India.