Carrum Health, a digital marketplace that enables employers to purchase healthcare services from providers for a bundled price directly, closed $40 million in a Series A funding round.
The round was led by Tiger Global Management, with participation from GreatPoint Ventures and Cross Creek and return investors Wildcat Venture Partners and SpringRock Ventures.
The company plans to use the new funds to expand its offerings to more employers, provide access to additional healthcare services, and enhance technology to support its clients and providers.
The Carrum Health platform is connected to the Carrum Health mobile app, which provides patients with the power to manage their own health by guiding them through all aspects of their care journey. Patients also have access to an expert care specialist who assists them throughout the process. According to data from Carrum Health, the platform helps employers curb rising healthcare spending at a time when surgery-related costs account for as much as 50% of expenses, with 25% of surgeries not being medically necessary.
“Making high-quality healthcare more affordable and easier to access is what drives us every day at Carrum Health,” said Sach Jain, CEO, and founder of Carrum Health.
“For years, the industry has talked about redesigning healthcare to benefit patients, but the only way to really do that is to tackle the underlying economics of care, a truly difficult task. At Carrum Health, we are solving just that. Employers now have a modern, technology-driven solution to help patients get better care without financial headache, and we are not stopping at surgery. In 2021 we’ll be expanding our reach and impact with additional services.”
In 2020, Digital Health companies raised $14.8 billion, a 66% increase compared to $8.9 billion in 615 deals in 2019, according to the latest Mercom Digital Health Funding & M&A report.