Alaffia Health, a provider of AI-powered medical claim management solutions purpose-built for health plans, raised $55 million in Series B funding.
Transformation Capital led the investment round with participation from FirstMark Capital, Tau Ventures, and Twine Ventures.
Founded in 2020, Alaffia Health has raised more than $73 million in funding to date, according to the latest funding data compiled by Digital Health Funding. Alaffia Health previously raised a total of $18 million in funding, including a $10 million Series A round in April 2024.
“With the latest funding, we’re expanding our team and platform so we can continue solving some of the most expensive operational challenges in healthcare and ultimately reduce the burden on the system as a whole,” said TJ Ademiluyi, co-founder and CEO of Alaffia.
Driving Compelling Savings and Operational Efficiency for Health Plans
Based in New York, Alaffia partners with leading regional and national health plans to help them scale clinical review capacity and unlock significant savings. To date, Alaffia has delivered millions of dollars in medical cost savings, reduced turnaround times from weeks to days, and improved consistency across findings.
Alaffia Health offers digital medical claim management solutions that pair expert clinicians with AI that forensically evaluates claims against the complete patient medical record, enabling faster, more accurate, and more defensible outcomes across the entire claims lifecycle. The startup claims its solutions have delivered 20%+ average savings on high-cost facility claims and 5x+ ROI for leading health plans.
Digital health companies have secured more than $170 billion in venture capital funding to date, according to the latest funding data compiled by Digital Health Funding. More recently, Indigo, a provider of an AI-driven end-to-end medical insurance liability underwriting and risk management platform for physicians and medical professionals, raised $50 million in fresh Series B funding.