Nibble Health Rakes in $8.5M to Simplify Medical Payments
The New York City startup scene has had a bountiful month full of funds being poured into local healthtech startups. Some have missions to personalize nutrition plans while others provide users with psychedelic teletherapy. Nibble Health, on the other hand, is building a business-to-business healthcare payment installment platform. On Tuesday, the startup raked in $8.5 million in funding to continue its mission.
Nibble Health’s Series A round was co-led by Wing Venture Capital and Tiger Global Management with participation from A* Capital and Expa. The startup’s technology allows other companies to provide zero-interest, zero-fee healthcare financing as an employee benefit. This process is similar to the many emerging buy now, pay later startups that exist for e-commerce activity.
Employees who partner with Nibble Health can use a Nibble card to pay for out-of-pocket healthcare expenses in free installments over time. This, according to the company, is a critical need for affordable and accessible financing solutions in healthcare.
“Installment payments have taken over e-commerce, but healthcare financing has been left behind. It’s a broken space that needs new solutions,” Nibble Health CEO Steven Greene said in a statement. “Our goal in starting Nibble Health is to provide affordable, transparent, easy-to-use healthcare payments products that empower patients to seek care without worrying about [the] upfront cost. Employers are the perfect enterprise partners to help us achieve this goal at scale.”
Nibble Health isn’t the only developing healthtech startup in the space that aims to make medical care more affordable either. The space is booming, especially after entrepreneur and investor Mark Cuban’s new venture Cost Plus Drugs gathered a lot of online traction for its ability to market low-cost versions of high-cost generic drugs with transparent pricing.
Similar startups with the mission of making medical care a financially lighter load for consumers include NYC-based Capital Rx, an enterprise focused platform that helps monitor medical billing and reimbursements. Captial Rx raised a $106 million funding round earlier this month.
Founded just one year ago, Nibble Health is an emerging player in what’s growing into a booming sector of healthtech. Greene told Built In via email that the company’s new capital will be used to hire as it continues to build its payments infrastructure.