Sohar Health, an AI-first platform focused on insurance eligibility and benefits verification, has raised $3.8 million in a seed funding round. The round was led by Kindred Capital, with participation from Y Combinator, Rebel Fund, and Concept Ventures.
The company aims to reimagine how healthcare providers verify patient coverage, a key step in preventing care delays, billing issues, and revenue loss. The funding will accelerate product development and expand Sohar’s reach across the U.S. healthcare system.
Before patients even walk through the clinic door, many face uncertainty about whether their insurance covers the care they need. From outdated directories to paperwork mistakes, these verification failures contribute to $140 billion in unpaid medical debt and a 20% initial claim denial rate.
According to industry data, six in ten people delay treatment after a denial, and nearly half of insured working-age adults report receiving surprise bills for care they believed was covered. Sohar Health is addressing this disconnect at the source, using automation to streamline the onboarding process and reduce friction for both providers and patients.
"Fixing healthcare isn't just about new treatments — it's about modernizing the infrastructure that enables care to happen in the first place," said Leila Zegna, Founding Partner of Kindred Capital.
The new funding will help Sohar expand its Verification product—designed to confirm patient eligibility in seconds—across more provider networks. With a median response time of 6 seconds and 96% accuracy in benefits data, the platform aims to cut down administrative errors and eliminate costly delays.
Sohar also supports bulk API usage, enabling up to 1,000 verifications per call. This helps providers ensure patients remain covered from the moment they schedule an appointment through the time of care.
“With this funding, we are developing a product suite to help healthcare organizations streamline insurance workflows, allowing providers to focus on patient care rather than paperwork,” said Ashish Mandavia, M.D., co-founder and CEO of Sohar Health.
Founded in 2023 by a physician and an engineer, Sohar Health set out to rebuild what it calls healthcare’s “front door.” The company specializes in AI-powered eligibility determination and verification of benefits (VoB), focusing on reducing denials and boosting price transparency.
Sohar’s products are already in use by behavioral health providers, primary care practices, and telehealth platforms. By automating manual workflows, the company helps providers reduce overhead and connect patients with covered care faster.
“With this funding, we are developing a product suite to help healthcare organizations streamline insurance workflows, allowing providers to focus on patient care rather than paperwork,” said Mandavia. “The launch of Verification further strengthens access to care by eliminating administrative friction and improving the patient experience.”
Alongside Kindred Capital, the round drew participation from high-profile names like Y Combinator, Rebel Fund, and Concept Ventures. These firms have previously supported other infrastructure-focused healthcare startups, aligning well with Sohar’s mission.
“The founders of Sohar Health have the deep domain experience to tackle this space head-on,” said Zegna. “Their AI-powered solution has already earned the trust of leading healthcare providers and powering millions of verifications a year.”
