Daffodil Health, a Bengaluru-based health tech startup that provides AI-powered healthcare administrative automation, announced it has secured $4.6 million in seed funding to advance the development of its software products. The funding round was spearheaded by Maverick Ventures, with a significant contribution from Epic Ventures.
Daffodil Health was co-founded in 2018 by technology and healthcare experts with vast healthcare and software development experience gained while working in other companies such as Google, MultiPlan, and McKinsey.
The startup’s mission is to completely automate healthcare processes and administration through AI-powered software solutions and help reduce costs in the healthcare sector. In 2024, Daffodil Health launched its first SaaS-based and AI-enabled OON/RBP repricer, which aims to automate redundant processes and AI-enabling out-of-network (OON).
The cloud-based SaaS solutions will help automate reference-based Pricing (RBP) processes for payors and Third-Party Administrators (TPAs), helping streamline these processes and offering solutions to the out-of-network billing dilemma that has persisted for years.
With early collaborations with innovative payors and TPAs, Daffodil Health’s automation application is anticipated to go live, and many implementations are expected in the next few months.
According to a McKinsey report, more than $1 trillion is spent on healthcare administration, and a bigger chunk of it is wasted with little benefit to patients. However, emerging technologies such as AI and large language models (LLM) make uber-automation of healthcare processes possible, helping cut administration costs in the healthcare sector.
