Mumbai-based startup QubeHealth, specializing in healthcare payments, is currently in discussions to secure $6-9 million in a Series A funding round over the next three to four months. The funding is expected to come from a Japanese fund and a Singaporean fund, with participation from existing investors such as Inflection Point Ventures, Keiretsu Forum, Axiomatic Ventures, New Horizon Ventures, Mohit Burman (Chairman of Dabur India), and other family offices, as per sources familiar with the matter.
Following this funding round, the startup’s valuation is anticipated to double to Rs 400 crore, as stated by one of the aforementioned sources. This development comes within six months of QubeHealth’s pre-Series A top-up round of Rs 25 crore, which reportedly valued the company at Rs 200 crore.
The bulk of the fresh capital is slated to be allocated towards enhancing QubeHealth’s artificial intelligence (AI) capabilities. “A significant portion of the funding will be dedicated to AI technology for predictive spending pattern analysis. Additionally, the startup aims to strengthen its financial security infrastructure,” explained the source.
QubeHealth also plans to establish an online healthcare marketplace within its app, featuring hospitals, clinics, pharmacies, and diagnostic centers across various cities and neighborhoods.
Founded in 2020 by Chris George and Gagan Kapur, QubeHealth operates as a B2B startup, offering two primary products: Qube Pay, a UPI-based payments feature offering cashback of up to 10 percent on transactions, and Qube Cash, a healthcare credit line providing up to Rs 10 lakh in no-cost EMIs for up to 12 months. This credit line covers a range of healthcare services beyond typical group health insurance coverage, including eye care, dental care, skin care, and even pet care.
Employers or corporate partners can include QubeHealth’s offerings as an additional benefit alongside existing insurance policies, with a subscription fee of Rs 720 per employee annually.
In 2024, QubeHealth aims to disburse Rs 50 crore in medical credit. The credit amount offered starts at Rs 30,000 and depends on factors such as the employee’s credit score, salary range, and employer. The startup boasts over 300 corporate partners encompassing approximately 150,000 employees and their families, along with a network of 12,000 hospitals and clinics. Notable corporate partners include Swiggy, ITC Hotels, Upstox, Reserve Bank of India, Zenoti, Financepeer, Prism Johnson, and SBI Life.
Both Qube Pay and Qube Cash have been in the market for over a year, with the app witnessing 30,000 monthly active users—a figure growing at around 40 percent month-on-month, according to one of the sources.
Tracxn data reveals that in FY23, QubeHealth generated revenue of Rs 8.5 crore from operations, marking a 17.9 percent year-on-year growth. However, losses for the period surged by 44.6 percent year-on-year to Rs 4.58 crore.
