Even Healthcare has successfully secured $50 million in a funding round spearheaded by Khosla Ventures, as the Indian startup aims to transform the financial dynamics of hospitals in the world’s most populous nation and redefine how physicians are compensated. This all-equity Series B funding round also attracted investment from Alpha Wave, elevating the company’s valuation to $300 million, which is three times its worth from 18 months prior, according to hinews. With this latest infusion, Even’s total capital raised has surpassed $120 million.
In India, hospitals typically generate higher revenues when patients undergo unnecessary tests, procedures, or extended hospital stays, even when such measures are not warranted. Even seeks to alter this paradigm by prioritizing patient care over the promotion of superfluous treatments that inflate medical expenses. This strategy has consistently resonated with Khosla Ventures, which has been an investor in Even since its seed round in 2021. The Silicon Valley venture capital firm is reaffirming its commitment as Even embarks on the journey to establish and manage its own hospitals, thereby gaining enhanced control over patient care and associated costs.
Vinod Khosla, the founder of Khosla Ventures, remarked that Even’s methodology transcends the mere rectification of isolated components within a fragmented healthcare system by integrating financing, technology, and care delivery. He articulated the objective, in a prepared statement, as one of rewarding improved health outcomes rather than merely increasing the utilization of healthcare services. “The clinical and economic results thus far give us confidence that this can evolve into a significant new model for healthcare in India and beyond,” Khosla stated.
Initially, Even depended on partner hospitals to provide care for its members; however, co-founder Mayank Banerjee indicated in an interview that the startup began to scrutinize this model after discovering that patients were subjected to unnecessary tests or surgeries. “We believe patients are not only experiencing subpar care, but insurers are also receiving a poor economic deal. Consequently, we resolved to address this by establishing our own hospitals,” Banerjee explained, according to hinews.
Since then, Even has inaugurated two hospitals in Bengaluru, both of which achieved operational profitability, excluding depreciation, within a year of their launch, as stated by Banerjee. The startup intends to open five additional hospitals in the southern Indian city over the next six months, funded by the recent financing round. Banerjee noted that Even leases hospital facilities under 20-year agreements and invests in outfitting them and acquiring medical equipment.
In contrast to hospitals where physicians may have financial incentives to recommend more procedures, Even compensates its doctors with fixed salaries, decoupling their earnings from the number of tests or surgeries performed. However, Banerjee mentioned that doctors can receive bonuses based on patient-reported clinical outcomes. This principle similarly applies to hospital management, whose remuneration is not tied to the volume of procedures conducted. Managers receive salaries and company-wide incentives, while marketing teams concentrate on attracting patients rather than generating revenue from those patients.
Moreover, every employee, including doctors and hospital staff, is granted equity in Even. This initiative aims to provide employees with a vested interest in the startup’s long-term success, rather than incentivizing them to increase medical expenses. Most of Even’s revenue is derived from patients paying for treatments, according to Banerjee. The startup also earns income through its partnerships with insurers and is collaborating with these partners on a model that could compensate it for hospitalizations it helps avert, rather than merely for delivering additional treatments.
Banerjee indicated that Even monitors patient recovery post-treatment using established medical scoring systems. For instance, in the case of knee replacements, it employs the Oxford Knee Score to assess pain and mobility. The startup publishes these results on its website, alongside comparative figures from other healthcare systems. Even asserts that its hospitals maintain an unplanned readmission rate of less than 1%, in contrast to an industry benchmark of 8% to 15%. Furthermore, it claims that patients spend 40% less time in the hospital and that its approach has saved insurers over ₹500 million (approximately $5.27 million).
Jai Sajnani, a partner at Khosla Ventures, remarked that the initial performance of Even’s hospitals was a significant factor in the firm’s decision to lead the funding round. “We are eager to assist the Even team in making quality care accessible to every family in Bengaluru and throughout India,” he stated.
Despite this progress, Even is still operating at a loss. The startup reported a net loss of ₹902 million (around $9.50 million) for fiscal 2025, a nearly 25% increase from the previous year, against revenues of ₹272 million (approximately $2.86 million), as per regulatory filings. In August, Even also laid off approximately 350 employees, according to the Indian startup news platform Entrackr. Banerjee acknowledged the restructuring as a challenging decision, noting that affected employees received severance packages, extended health insurance, and accelerated equity vesting.
Currently, Even employs around 650 individuals, including approximately 300 full-time doctors. The startup boasts a membership base of about 250,000 and has recorded over 750,000 patient interactions since its inception in 2021, encompassing consultations, diagnostic tests, and surgeries, according to Banerjee. He stated that Even could achieve profitability within months if it ceased expansion expenditures; however, the startup has opted to prioritize growth instead. He refrained from disclosing when the startup anticipates reaching profitability. “At this moment, we are focused on investing in growth and serving a larger patient base,” Banerjee concluded.
