Digital well being got here into its personal throughout the Covid-19 pandemic, offering a socially-distanced method for folks to make use of apps, smartphone cameras, wearables and internet companies to attach with physicians and deal with many different duties that beforehand would have required attending conferences in individual. That’s opened the door to various different on-line instruments to enter the dialog with the promise of giving customers not only a straight alternative however doubtlessly higher service than they could have skilled with out it. Within the newest growth, a startup known as Nayya Well being — which has constructed a advice engine to assist folks select advantages, in addition to an RPA-style digital assistant to assist customers navigate the typically advanced waters of insurance coverage, medical and office administration when claims do have to be made — has closed a spherical of $55 million.
The Sequence C fairness spherical is being led by ICONIQ Development (the VC that makes later-stage investments on behalf of various household places of work for high-profile tech leaders such because the Chan Zuckerberg’s), with Transformation Capital, Felicis Ventures and SemperVirens additionally collaborating. Iconic, Felicis and SemperVirens are all present backers, whereas Transformation is a brand new investor with this spherical. The startup has been on a fundraising tear within the final 12 months, a mark of how its service has grown throughout Covid-19. Since we coated a seed spherical for Nayya in July 2020 — 5 months into what grew to become a pandemic and international shutdown — the startup went on in 2021 to boost two extra rounds totaling $48 million.
Sina Chehrazi, Nayya’s co-founder and CEO, gave me a comparatively big selection for the present valuation in an interview, between $500 million and $750 million. The corporate has nevertheless confirmed that it has doubled its valuation because the final spherical, when PitchBook estimated to be about $235 million, placing the precise quantity now doubtless nearer to $500-600 million.
These numbers, given they’re simply paper valuations, are extra helpful simply as a marker of Nayya’s development than telling the complete story of the startup. Chehrazi tells me that he and co-founder Akash Magoon (who’s the CTO) created Nayya to fill what they noticed as an data vacuum within the healthcare trade, specifically within the privatized U.S. system.
Final 12 months, he stated, some 600,000 folks filed for chapter safety as a consequence of healthcare points — which means, they had been being crippled by the prices and managing them. “And lots of of those, 63%, had insurance coverage,” he famous. A part of the issue is the ignorance about getting the very best out of a coverage, mixed with the truth that healthcare prices are spiraling.
“We’ve been residing in a world the place for those who go to a hospital on the appropriate or left facet of a road, you may be paying a special sum of money of the identical process,” he stated. “Individuals can not perceive their healthcare on the very best days and wrestle to make use of on their worst days.”
Whereas he acknowledges that a whole lot of that is additionally institutional and must be laid on the ft of lawmakers, whereas that’s being labored by, Nayya’s strategy, he stated, is “solving the ache in the present day, by serving to folks select the appropriate plans and use them.”
Lawmakers nonetheless have lots to do to make healthcare reasonably priced and usable by extra folks within the U.S., however they’ve already taken steps to make it a authorized requirement for clinicians to be extra clear about prices and affected person information, and that has offered an entry level for corporations like Nayya (and different well being tech corporations) to leverage that for its algorithms.
Nayya’s algorithmic recommendations-meets-RPA engine is utilized by particular person shoppers, however its clients are employers, who contract with the corporate to offer its engine (and app) to its workers each to assist them work out what advantages they need to take, primarily based on their well being histories and different components similar to present medical doctors and which networks they’re in; after which when claims are being made, it helps these people additionally work out find out how to deal with these to get probably the most out of these exchanges.
Extra just lately, Chehrazi stated that Nayya has additionally been contracting with insurance coverage corporations, that are getting leaned on by larger workers to offer extra transparency to workers as a part of their service bundle.
Most significantly, he stated that Nayya has no intention of changing into an insurance coverage supplier itself, describing the corporate’s position as extra akin to being like a “Turbo Tax” for managing advantages, there to help and being profitable out of that service alone. (It contacts as B2B and expenses a flat month-to-month payment per consumer, no matter how typically the service is used, so no incentive is labored into the mannequin to encourage kind of utilization.)
On the essential degree of per-user development, the corporate has seen revenues develop 7x since final 12 months and can develop one other 3x this 12 months, Chehrazi stated. It doesn’t disclose buyer numbers however stated that it really works each with massive enterprises and firms with as few as 50 workers. It can additionally over time launch a product concentrating on freelancers and sole merchants that may need to use its suggestions system — though it’s not clear if that shall be bought by the businesses the place these folks contract for work, or on to these people.
Over time, Nayya has expanded into greater than healthcare into offering suggestions and administrative help for different advantages that organizations present to workers, together with life insurance coverage, monetary planning (eg, round pensions or for these utilizing their salaries to often repay scholar loans), and ancillary companies like psychological well being and wellness.
“We imagine Nayya’s distinctive development and adoption in simply over two years is a real testomony to the power of the subtle data-driven platform and rising market want. It’s changing into more and more crucial for workers to be outfitted with efficient and information pushed instruments to make extra knowledgeable profit choices each at enrollment and all year long,” stated Caroline Xie, common associate at ICONIQ Development, in an announcement. “We’re thrilled to proceed supporting the Nayya workforce as they prolong their mission.”
“Investing in the way forward for advantages is extraordinarily necessary, particularly because the healthcare panorama and expectations of shoppers are altering so quickly,” added Mike Dixon, managing associate at Transformation Capital. “Nayya has efficiently built-in Synthetic Intelligence into your entire advantages expertise – making a consumer-driven platform that erases benefits-related confusion and stress – whereas fixing an enormous problem nearly all companies and their workers face.”