Sohar Health, an AI-driven InsurTech company specialising in real-time eligibility determination and Verification of Benefits (VoB), has announced a $3.8m seed funding round.
The round was led by Kindred Capital, with additional backing from Y Combinator, Rebel Fund, and Concept Ventures.
The new capital will support the company’s goal of improving access to healthcare by modernising insurance verification systems that often create barriers to timely care.
Founded to address the widespread inefficiencies plaguing insurance workflows in the US healthcare system, Sohar Health uses AI to streamline the patient intake process.
Its technology enables providers to instantly confirm coverage, eliminating the need for time-consuming manual processes and reducing administrative burdens.
The latest funding will enable Sohar Health to accelerate the development of its product suite and further its mission to remove insurance-related obstacles that contribute to care delays, billing issues, and patient dissatisfaction.
According to the company, its flagship product, Verification, processes 90% of eligibility checks within 30 seconds and achieves a 96% accuracy rate in benefits data, including key financial information such as copays and coinsurance.
The impact of insurance verification breakdowns is significant. Approximately 45% of insured, working-age Americans report receiving unexpected medical bills, and many delay or avoid treatment after coverage is denied. These inefficiencies contribute to an estimated $140bn in unpaid medical debt and result in operational losses for healthcare providers.
“Fixing healthcare isn’t just about new treatments — it’s about modernising the infrastructure that enables care to happen in the first place. Insurance verification is one of the most overlooked choke points in the revenue cycle, creating delays, denials, and massive inefficiencies for providers and patients alike,” Kindred Capital founding partner Leila Zegna said. “The founders of Sohar Health have the deep domain experience to tackle this space head-on, and their AI-powered solution has already earned the trust of leading healthcare providers and powering millions of verifications a year. We believe they’re building critical infrastructure for a more accessible, efficient healthcare system.”
Sohar Health CEO and co-founder Ashish Mandavia said, “At Sohar Health, we believe the future of healthcare is seamless, efficient, and patient-focused. With this funding, we are developing a product suite to help healthcare organisations streamline insurance workflows, allowing providers to focus on patient care rather than paperwork. The launch of Verification further strengthens access to care by eliminating administrative friction and improving the patient experience.”
The company’s AI-powered tools are already in use among top behavioural health providers, primary care organisations and telehealth platforms, helping ensure patients receive in-network care without costly delays.
There is no record of previous investment disclosed in the original release.
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