Digital health startup Transcarent valued at $2.2 bln after latest funding round

London: Digital health startup Transcarent notched a valuation of $2.2 billion after its latest fund raise, led by General Catalyst and 7wireVentures, amid signs of a rebound in the funding market.

The company said on Thursday it had raised $126 million in a series D funding round, which brings its total raise to about $450 million to date.

WHY IT'S IMPORTANT

Hopes of a soft landing of the U.S. economy and interest rate cuts have boosted investor confidence in startups.

Technology-focused startups have been able to secure a chunk of the investments, following a boom in artificial intelligence after the launch of Open AI's ChatGPT in 2022.

CONTEXT

Transcarent, which was founded in 2020, helps companies to cut costs and effectively manage health care benefits for their employees by reducing complexity. More than 4.3 million people have access to Transcarent's platform through their employer or health plan.

The latest funding will be used to accelerate AI capabilities and support commercial and strategic growth.

KEY QUOTE

"Transcarent is bending the healthcare cost curve for consumers and employers, demonstrating that you can deliver great care and a great experience while also decreasing costs," said John Roos of Geodesic Capital, which also participated in the latest funding round for Transcarent.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shinjini Ganguli)