General Catalyst leads $218 million seed round in PB Fintech's healthcare unit

08 May 2025, 02:50 PM

The funding will be used to establish PB Health's first hospital network in the Delhi NCR and to accelerate product development and technology innovation.

Team Head&Tale

PB Healthcare Services Private Limited (PB Health), a newly formed healthcare venture formed by PB Fintech, has raised $218 million in the first tranche of its seed funding round.

The round was led by global investment firm General Catalyst, with additional participation from PB Fintech and other external investors.

The funding will be used to establish PB Health's first hospital network in the Delhi National Capital Region and to accelerate product development and technology innovation. 

Two weeks back, PB Healthcare Services announced a Rs 1,461 crore ($171 million) fundraise in its seed round’s initial tranche. 

Out of the total funds, PB Fintech already infused Rs 539.4 crore, while the remaining amount was supposed to be brought in by external investors, PB Fintech's exchange filings had then disclosed.

Earlier, PB Fintech had approved an investment of up to Rs 696 crore in PB Healthcare via equity or preference shares for FY26. The move had been approved by the company's board in a meeting held in March 2025.

PB Fintech’s holding in PB Healthcare declines from 100% to 32.14% due to the entry of external investors. 

"We are very excited to partner with General Catalyst in building the next chapter of healthcare in India. Since 2015, we've always chosen our primary investor carefully, and this time was no different — we approached the General Catalyst team for their deep investment experience and strong understanding of health tech. Our focus remains on building a tech-first healthcare platform that improves outcomes, enhances trust, and redefines the care journey for millions across India," said Yashish Dahiya, Chairman and Group CEO of PB Fintech.

"We believe India has a unique opportunity to leapfrog legacy models and build a resilient, inclusive health assurance system—one that makes care more proactive, affordable, and accessible. Yashish has already built one of India’s largest insurance platforms, and is uniquely positioned to deliver impact at scale for the country's middle class," Neeraj Arora, managing director at General Catalyst, noted.

PB Health plans to launch a 1,000-bed hospital network in Delhi NCR and has set its sights on phased expansion in other regions. The company's model involves direct hospital operations, removing pre-authorisation steps and streamlining claims processes, aiming to offer patients a seamless and predictable healthcare experience.