Khosla Ventures doubles down on Even Healthcare to challenge India’s hospital economics

Khosla Ventures has significantly increased its investment in Even Healthcare, a startup aiming to revolutionize India's hospital economics, by leading a $50 million Series B funding round. The round, which values Even at $300 million, nearly triples its valuation from 18 months ago. This strategic move underscores Khosla Ventures' belief in Even's unique approach to healthcare, which seeks to challenge the current system by focusing on patient care rather than encouraging unnecessary medical procedures.

Even Healthcare's model particularly appeals to Khosla Ventures, a Silicon Valley-based firm that first invested in the company during its seed round in 2021. The venture capital firm sees potential in Even's plan to build and operate its own hospitals, giving it greater control over patient care and costs. Vinod Khosla, founder of Khosla Ventures, emphasized that Even's approach goes beyond simply fixing parts of a fragmented healthcare system.

Instead, the firm aims to reward better health outcomes rather than encouraging more medical services.

Initially, Even relied on partner hospitals to treat its members, but the startup eventually decided to build its own facilities after noticing that patients were often subjected to unnecessary tests and surgeries. Two hospitals in Bengaluru, the startup's home city, have already turned profitable, excluding depreciation, within a year of opening. The company plans to open five more hospitals in the next six months, funded by the latest round of funding.

One of the key differentiators of Even's model is its compensation structure. Doctors at Even are paid fixed salaries, not based on the number of procedures they perform. This contrasts with many traditional hospitals where doctors' earnings are tied to the volume of treatments they recommend. Similarly, hospital management at Even is compensated based on fixed salaries and company-wide incentives, rather than the number of procedures performed.

This approach aims to foster a culture of quality care rather than financial incentives for more medical bills.

All employees, including doctors and other hospital staff, receive equity in Even, aligning their interests with the startup's long-term success rather than incentivizing them to generate more medical bills. Even primarily generates revenue through patient payments, but also works with insurers to develop models that compensate for hospitalizations prevented rather than simply for providing more treatment.

Even's hospitals boast an unplanned readmission rate of less than 1%, significantly lower than the industry benchmark of 8% to 15%. Additionally, patients at Even's hospitals spend 40% less time in the hospital compared to other facilities. The startup has also reported saving insurers over ₹500 million (about $5.27 million) through its approach.

Despite these promising metrics, Even is currently operating at a loss, posting a net loss of ₹902 million (about $9.50 million) in fiscal 2025. However, the company plans to continue investing in growth rather than focusing solely on profitability, aiming to provide quality care to more families in Bengaluru and across India.