Dhiraj Goel and Aniruddha Sen: Revolutionizing Healthcare Financing with Kenko Health

In 2017, Aniruddha Sen had a vision to make healthcare accessible and affordable for the masses, but his innovative idea was met with skepticism. An industry veteran with nearly two decades of experience in hospitality and health insurance, Sen knew that the traditional healthcare system needed a fresh perspective. He proposed a radical approach, but his employers found it too niche and laughed off his prescription. The healthcare industry had grown accustomed to thinking in terms of crores (tens of millions), and Sen’s vision of a subscription-based service, costing as little as Rs 299 per month, with medicine expenses priced at Rs 30-40, appeared inconsequential to the traditional players. Sen realized that it was challenging for the healthcare establishment to comprehend the value of small payments and niche offerings.

Dhiraj Goel, the co-founder of Kenko Health, shared Sen’s frustration with the healthcare industry’s insensitive outlook, which prioritized sales over the insured’s well-being. Sen and Goel were determined to transform the healthcare landscape by introducing a more compassionate and human-centric approach to healthcare financing. They aimed to combine the best of traditional health insurance with innovative offerings, focusing on outpatient department (OPD) expenses, which had been overlooked. In 2019, Kenko Health was founded by Sen and Goel. However, the duo faced another hurdle as venture capitalists struggled to grasp their innovative business model. They aimed to cover OPD expenses and create a subscription-based healthcare financing service, offering comprehensive health coverage. Their model looked beyond hospitalization, and tech investors had difficulty understanding the concept.

Kenko Health’s proposition was groundbreaking, as it addressed healthcare financing from the OPD perspective, a perspective that had never been explored. Unlike episodic hospitalization expenses, OPD costs accumulated gradually over time without causing a significant financial shock. Sen emphasized that many people spent multiple times the cost of hospitalization over the years without realizing it, which eroded their savings. The core idea was simple yet transformative: a subscription-based service covering health expenses, including OPD and hospitalization, in collaboration with insurance companies. Kenko’s unique product found a receptive audience among consumers and investors alike.

Fast forward to February 2022, and Kenko Health’s conviction is bearing fruit. The company secured $12 million in Series A funding, led by Sequoia Capital India, with participation from existing investors such as Beenext, Orios, 9Unicorns, and Waveform. Kenko now boasts over 50,000 users across India and plans to expand its OPD coverage to include dental, mental health, at-home care, and sexual health. The ongoing pandemic played a role in driving wider adoption. People realized that traditional health insurance packages did not cover OPD expenses, which accounted for nearly 70% of their lifetime healthcare expenses. Kenko Health stepped in to bridge this gap by providing comprehensive financing and support.

Sequoia Capital India’s Abhishek Mohan highlighted the need to reimagine healthcare expense management in India, where 62% of healthcare expenses are settled out-of-pocket, compared to 11% in the US and 36% in China. Kenko Health is leading this change by offering affordable, all-inclusive healthcare subscription packages with a tech-first claims process. The founders’ extensive experience in the health insurance industry—Sen in online retail health insurance and Goel in actuarial and underwriting—provided a unique advantage. This experience allowed them to make design choices that set Kenko apart from traditional insurance companies. They positioned the company as an affordable, patient-friendly, and middle-income layer-friendly healthcare financing partner.

For Orios Venture Partners’ Anup Jain, Kenko Health fills a massive gap in healthcare finance that had been overlooked by incumbents. The company targets middle-income consumers who find traditional insurance challenging to understand and derive value from. Kenko’s innovative monthly subscription plans offer an all-encompassing digital experience, streamlining OPD and inpatient expenses without cumbersome paperwork. Sen acknowledges that there’s much work to be done, emphasizing the need to revamp the existing cashless system. The existing system often falls short of providing the true benefits of cashless coverage, as hospitals may still demand a security deposit upon admission. Sen believes that a complete system overhaul is essential to achieve the full potential of healthcare financing.

In the journey of Kenko Health, it’s still “Day One,” and with their innovative approach, Sen and Goel aim to transform and improve the healthcare financing landscape in India.