Even Healthcare secured $50 million in its latest funding round led by Khosla Ventures. The Indian startup aims to transform revenue models for hospitals in the world's most populous nation and shift how physicians receive compensation.

The all-equity Series B round included participation from Alpha Wave and valued the company at $300 million, three times its valuation from 18 months earlier, according to Even. This round brings the total capital raised by Even to more than $120 million.

Indian hospitals often generate higher income when patients receive extra tests, procedures, or extended stays, even if those may not be essential. Even seeks to alter this dynamic by prioritizing patient outcomes instead of encouraging unneeded services that increase costs.

This strategy has kept Khosla Ventures engaged since its seed investment in 2021. The Silicon Valley firm is increasing its commitment as Even constructs and runs its own hospitals to gain more oversight of care quality and expenses.

Vinod Khosla, founder of Khosla Ventures, noted that Even integrates financing, technology, and care delivery to address broader issues in a fragmented system. The objective, he stated in a prepared release, is to incentivize improved health results rather than higher service volume.

"The clinical and economic results so far give us conviction that this can become an important new model for healthcare in India and beyond," Khosla said.

Even initially partnered with existing hospitals for member treatments. Founder Mayank Banerjee, who started the company in 2021 alongside Matilde Giglio and Alessandro Ialongo, explained in an interview that the team began to question the approach after observing unnecessary tests and surgeries recommended to patients.

"We think patients are getting not only a bad experience, but insurers are getting a bad economic deal. And as a result, we decided to fix it by building our own hospitals," Banerjee told TechCrunch.

Even has opened two hospitals in Bengaluru that reached operational profitability, excluding depreciation, within a year. The company plans to launch five additional facilities in the city over the next six months using proceeds from the new round.

Banerjee noted that Even leases hospital buildings under 20-year agreements and invests in renovations plus medical equipment purchases.

Unlike traditional setups where physicians may earn more for additional procedures, Even compensates doctors with fixed salaries. Pay is not linked to test or surgery volume, though bonuses can be awarded based on patient-reported outcomes.

This model applies to hospital leadership as well, with compensation disconnected from procedure counts. Managers receive base salaries and company incentives, while marketing teams focus on patient acquisition rather than revenue generation. All staff, including physicians, receive equity to align interests with long-term company success.

Most revenue stems from direct patient payments for treatment, Banerjee said. Additional income comes from insurer partnerships. The startup is also exploring models that reward prevention of hospitalizations rather than treatment volume.

Even monitors recovery using standard medical scoring systems, such as the Oxford Knee Score for knee replacements. Results appear on its website alongside benchmarks from other systems.

Even reports an unplanned readmission rate below 1 percent versus an industry range of 8 to 15 percent. Patients spend 40 percent less time hospitalized, and the approach has saved insurers more than ₹500 million (about $5.27 million).

Jai Sajnani, a partner at Khosla Ventures, said the early results from Even's hospitals prompted the firm to lead the round. "We look forward to helping the Even team put quality care within reach of every family in Bengaluru and across India," he said.

Even continues to operate at a loss. It recorded a net loss of ₹902 million (about $9.50 million) in fiscal 2025, up nearly 25 percent from the prior year, on revenue of ₹272 million (about $2.86 million), per regulatory filings.

In August, Even reduced its workforce by about 350 positions, according to Entrackr. Banerjee described the move as difficult and noted that affected staff received severance, extended health coverage, and accelerated equity vesting.

Even now employs roughly 650 people, including about 300 full-time physicians. The company serves around 250,000 members and has logged more than 750,000 patient interactions since 2021, covering consultations, tests, and surgeries, Banerjee said.

Banerjee added that Even could reach profitability within months by halting expansion spending, yet it prefers to prioritize growth. He did not specify a timeline for profitability.

"Right now, we're investing in growth and serving more patients," Banerjee said.

When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.