Khosla Ventures backs Even Healthcare with $50 million to reshape Indian hospital economics

Even Healthcare announced a $50 million all-equity Series B round on Tuesday, with Silicon Valley firm Khosla Ventures as the lead investor and participation from Alpha Wave. The financing values the Bangalore-based startup at $300 million, three times its worth just a year and a half ago, and lifts its total capital raised to more than $120 million.

Founded in 2021 by Mayank Banerjee, Matilde Giglio and Alessandro Ialongo, Even set out to break the link between hospital revenue and the volume of tests or procedures performed. The company now operates its own facilities, paying doctors fixed salaries and offering bonuses only when patients achieve predefined clinical outcomes. Management and support staff receive salaries plus company-wide incentives, and every employee holds equity, removing the traditional financial motive to over-treat.

The shift to owned hospitals began after the founders observed unnecessary interventions at partner institutions. Even now runs two Bengaluru hospitals that achieved operational profitability, excluding depreciation, within a year of opening. The firm plans to add five more sites in the city over the next six months, financing the expansion through the new round. Buildings are leased on 20-year terms, with Even responsible for interior fit-out and medical equipment purchases.

Clinical data released by the startup shows an unplanned readmission rate below 1 percent, starkly lower than the industry range of 8 to 15 percent. Patients also spend roughly 40 percent less time in the hospital, and insurers have reportedly saved more than ₹500 million (about $5.27 million) through the model. Revenue primarily comes from patient fees, supplemented by insurer partnerships, and Even is exploring payment structures that reward the company for preventing admissions rather than delivering more services.

Despite these operational gains, Even posted a net loss of ₹902 million (approximately $9.5 million) for fiscal 2025, a 25 percent increase over the prior year, on revenue of ₹272 million (about $2.86 million). The company also reduced its workforce by roughly 350 employees in August, offering severance, extended health coverage, and accelerated equity vesting to those affected. Current headcount stands at about 650 staff, including 300 full-time doctors, serving 250 000 members and recording more than 750 000 patient interactions since launch.

Banerjee acknowledges the financial shortfall but argues that scaling remains the priority. “If we halted expansion we could turn profitable within months, but our goal is to reach more families,” he said, declining to set a profitability timeline. Khosla Ventures partner Jai Sajnani highlighted the early performance of Even’s hospitals as a key factor in the investment, noting the firm’s ambition to make quality care accessible across India. The coming months will test whether Even can sustain its growth while narrowing the gap between clinical outcomes and financial viability.