Even Healthcare Secures $50 Million to Revolutionize Hospital Economics in India
Even Healthcare, an Indian health-tech startup, has successfully raised $50 million in a Series B funding round led by Khosla Ventures. This injection of capital aims to transform how hospitals in India, the world’s most populous country, generate revenue and how doctors are rewarded for their services. The round, which is entirely equity-based, also saw participation from Alpha Wave and has valued the company at $300 million—tripling its worth in just 18 months, according to Even. With this latest funding, Even’s total capital raised surpasses $120 million.
The healthcare market in India has traditionally incentivized hospitals to increase patient stays, procedures, and diagnostic tests, often irrespective of medical necessity. This model inflates medical bills and can lead to overtreatment. Even Healthcare challenges this status quo by prioritizing patient care quality over volume, aiming to curb unnecessary interventions and thereby reduce costs.
Khosla Ventures has been a steadfast supporter of Even since its $5 million seed round in 2021. The Silicon Valley-based venture firm’s continued investment reflects confidence in Even’s vision, especially as the startup transitions to building and operating its own hospitals. This shift grants Even greater control over both patient care delivery and cost structures.
A New Model for Healthcare Delivery and Compensation
Vinod Khosla, founder of Khosla Ventures, emphasized that Even’s integrated approach—combining financing, technology, and care delivery—addresses the fragmentation prevalent in India’s healthcare system. He highlighted that Even’s model rewards improved health outcomes rather than the volume of healthcare services provided, underscoring the potential for this approach to scale beyond India.
Initially, Even partnered with existing hospitals to serve its members. However, co-founder Mayank Banerjee revealed that the team grew concerned after discovering that many patients were subjected to unnecessary tests and surgeries. This realization prompted Even to launch its own hospital facilities to better align incentives and patient care.
Since then, Even has opened two hospitals in Bengaluru, both achieving operational profitability—excluding depreciation—within a year. Supported by the recent funding, the company plans to open five more hospitals in the same city over the next six months. Even leases hospital buildings on long-term, 20-year agreements, investing in outfitting the facilities and acquiring medical equipment.
Aligning Incentives with Patient Outcomes
Unlike conventional hospitals where physicians may have financial incentives to increase procedures, Even compensates its doctors with fixed salaries. While doctors can earn bonuses, these are tied to patient-reported clinical outcomes rather than the volume of tests or surgeries performed. Hospital management follows a similar philosophy, receiving fixed salaries and company-wide incentives unrelated to procedure counts. Marketing teams focus on attracting patients without being compensated based on the revenue those patients generate.
Importantly, all employees—including doctors and hospital staff—receive equity in Even. This strategy is designed to foster a shared commitment to the startup’s long-term success rather than incentivizing the generation of higher medical bills.
The company’s revenue primarily comes from patient payments for treatments, alongside partnerships with insurers. Even is also experimenting with insurer collaborations to develop models that reward the prevention of hospitalizations, not just the provision of services.
Measuring Success Through Patient Outcomes and Efficiency
Even employs established medical scoring systems to monitor patient recovery rigorously. For example, it uses the Oxford Knee Score to assess pain and mobility following knee replacement surgeries. The startup openly publishes these results on its website, providing transparency and enabling comparisons with other healthcare systems.
Its hospitals report an unplanned readmission rate of less than 1%, significantly outperforming the industry benchmark of 8% to 15%. Additionally, patients spend approximately 40% less time hospitalized. Even estimates that its approach has saved insurers over ₹500 million (about $5.27 million), demonstrating both clinical and economic benefits.
Jai Sajnani, a partner at Khosla Ventures, noted that these early positive results were a compelling factor in leading the funding round. He expressed optimism about Even’s potential to extend quality care access to families across Bengaluru and throughout India.
Challenges and Growth Outlook
Despite its promising model, Even Healthcare remains in the red. Regulatory filings reveal a net loss of ₹902 million (approximately $9.50 million) in fiscal 2025, a nearly 25% increase from the previous year, on revenues of ₹272 million (about $2.86 million). In August, the startup undertook a significant restructuring, laying off around 350 employees. Founder Mayank Banerjee described this as a difficult but necessary decision, emphasizing that affected employees received severance packages, extended health insurance, and accelerated equity vesting.
Currently, Even employs roughly 650 individuals, including about 300 full-time doctors. Since its inception in 2021, the company has amassed around 250,000 members and facilitated over 750,000 patient interactions, encompassing consultations, diagnostics, and surgeries.
Banerjee indicated that Even could achieve profitability within months if it halted expansion spending; however, the startup remains committed to growth, focusing on serving an increasing number of patients. He declined to provide a specific timeline for profitability, stating, “Right now, we’re investing in growth and serving more patients.”
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