HiLabs Announces Closing of $39 Million Series B Financing to Advance its AI-powered Data Management Solutions for Healthcare Organizations

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Mar 14, 2024, 09:00 ET

The round was co-led by Eight Roads Ventures and Denali Growth Partners, with participation from F-Prime Capital and other investors.

BETHESDA, Md., March 14, 2024 /PRNewswire/ -- HiLabs, a leading provider of AI-powered solutions to manage dirty data, unlocking its hidden potential for healthcare transformation, today announced a $39 million Series B financing. The round was led by Denali Growth Partners and Eight Roads Ventures, with participation from F-Prime Capital. The capital raise follows rapid customer adoption of its healthcare data ingestion, cleansing, and enrichment platform, MCheck™, and will support continued enhancement of the technology as well as recruitment of top-tier talent and expansion of its product teams.

Founded in 2014, HiLabs' mission is to ensure timely access to clean data for payers, providers, and patients at a time when healthcare organizations worldwide are transitioning toward data-driven decision-making. HiLabs' cloud-based MCheck platform ingests, cleans, and enriches critical healthcare information, resulting in significant reduction in healthcare organizations' operational costs and improvement in patient outcomes. The MCheck platform technology, featured in the Journal of the American Medical Association ("JAMA "), supports some of the largest health insurance companies in the US in their efforts to automate and improve administrative processes. The company's provider directory management solution is live in most US states, analyzing data of over 80% of the country's healthcare providers. It is expanding its platform capabilities to include other data types such as electronic medical records and value-based care data.

"Timely and high-quality data exchange between payers and providers is key to reducing care costs, improving outcomes," said Amit Garg, co-founder, and CEO of HiLabs. "As we embrace this next phase of growth, we're thankful for the backing of healthcare-focused investors. We stand poised to propel our AI-technology forward, empowering healthcare organizations to make swift, informed decisions based on data that's not just clean, but readily available when it matters most."

"Payors are increasingly looking for innovative technology solutions to make complex and disparate healthcare data actionable. The HiLabs team really impressed us with their vision, best-in-class product suite and strong customer traction, which is testament to their product-market fit," says Dr. Prem Pavoor, Senior Partner, Head of India and Healthcare Investments at Eight Roads Ventures. "We have closely followed Amit's journey over the past couple of years as he has leveraged the US-India corridor very effectively to build both a top tier leadership team and deep AI/ML talent in their India R&D centers. We look forward to partnering with him and his team in this next, exciting phase of growth."

"We are thrilled to support HiLabs as they continue to solve critical data issues within healthcare," states Jesse Lane, Founder and Managing Member of Denali Growth Partners. "While many discuss the potential of AI, particularly in the healthcare ecosystem, HiLabs is demonstrating real-world impact by leveraging advanced AI techniques to ingest and cleanse data for four (4) of the nation's top ten health payers, along with numerous regional players."

"At athenahealth and in venture, I've seen many approaches to applying data science to healthcare data," said Carl Byers, Partner at F-Prime, previously the CFO of athenahealth for more than a decade. "HiLabs' AI-driven approach to data management not only fills a critical gap in the market but it also enables transformational change among payers and providers to leverage real-time data to improve user experiences, cost, and value."

About HiLabs
HiLabs is a leading provider of AI-powered solutions to clean dirty data, unlocking its hidden potential for healthcare transformation. HiLabs is committed to transforming the healthcare industry through innovation, collaboration, and a relentless focus on improving patient outcomes. For more information, contact [email protected].

About Denali Growth Partners
Denali Growth Partners is a Boston-based growth equity firm with more than $250 million in regulatory assets under management. DGP seeks to partner with rapidly-growing and capital-efficient businesses serving the healthcare and technology ecosystems. DGP helps management teams and companies accelerate growth through capital and strategic resources. Additional information about Denali Growth Partners is available at www.denaligrowth.com.

About Eight Roads Ventures
Eight Roads Ventures is a global proprietary investment firm backed by Fidelity managing over $11 billion of assets across offices in China, India, Japan, the UK, and the U.S. Our 50-year history of investing includes partnerships with over 300 healthcare and technology companies. In May 2022, Eight Roads launched its first dedicated $250 million healthcare and life sciences fund for India. Eight Roads' India active and exited healthcare partner companies include Ashish Life Science, Bicara Therapeutics, Caplin Steriles, Carestack, Cipla Health, Core Diagnostics, Denali Therapeutics, Doceree, Eywa Pharma, Elucidata, Enko, Enzene Biosciences, Immuneel Therapeutics, Laurus Labs, Medwell Ventures, NOCD, Plasmagen Biosciences, Proximie, OZiva, PharmEasy, Richcore Lifesciences, Specsmakers, Spry, Toothsi, Trivitron Healthcare, and Ujala Cygnus. For more information, please visit www.eightroads.com.

SOURCE HiLabs