Codoxo, a trusted provider of healthcare artificial intelligence solutions, announced it closed a $20 million oversubscribed Series B funding round to support explosive demand for its Healthcare Integrity Suite of solutions that leverage the company’s Forensic AI Platform to address fraud and payment integrity issues for healthcare payers and government agencies.
Codoxo’s Series B funding is led by QED Investors, who also participated in Codoxo’s Series A round in 2020. New investors joining this round of funding are Sands Capital Management and 111 West Capital. Existing investors that also participated in this round are Brewer Lane Ventures, Spider Capital and GRA Venture Fund. This Series B round brings Codoxo’s total funding to about $30 million.
“QED pursues and partners with industry disruptors such as Codoxo who are using advanced technologies to significantly impact how the U.S. healthcare industry is driving down costs,” said Matt Risley, Partner at QED Investors. “We’ve been working with Musheer and the excellent team at Codoxo for more than a year and are excited to lead this round of funding. By building an AI-based technology that identifies problems and suspicious behavior quicker and more efficiently than competitors, Codoxo delivers impactful results to healthcare organizations, helping the overall healthcare ecosystem find better ways to eradicate fraud, waste, and abuse and ensure payment integrity.”
“Tremendous innovation is happening in the healthcare space, especially when it comes to advanced analytics that impact healthcare costs,” stated Michael Graninger, Partner at Sands Capital. “Sands Capital is strongly committed to partnering with companies like Codoxo that are transforming and simplifying integral industries such as healthcare and have considerable potential for successful growth.”
The latest investment is being used to meet rapidly growing demand for its technology, particularly among government agencies and healthcare payers along with expansion into the Pharmacy Benefit Managers (PBM) market. As a result, Codoxo is accelerating hiring efforts across all teams with an emphasis on recruiting talent with strong payment integrity experience. The company currently employs 45 people and anticipates doubling its headcount by year-end 2022. Funds also will be used to advance Codoxo’s long-term roadmap of products and services. These efforts would support or complement its current product line, collectively called the Healthcare Integrity Suite, which comprises Fraud Scope, Payment Scope, Provider Scope, Audit Scope, Insight Scope, Network Scope and Clinical Scope.
“We are thrilled to have an oversubscribed round close so quickly with leading investors. The impact we have shown to our healthcare payer and government agency clients by saving significant dollars in a very short amount of time gives investors an immense amount of confidence to support our mission in a meaningful way,” stated Musheer Ahmed, Codoxo’s Founder and Chief Executive Officer.
Learn more about Codoxo’s mission and explore job opportunities by visiting the careers page at https://www.codoxo.com/careers.
Codoxo’s mission is to make healthcare more affordable and effective for everyone and serves as the premier provider of artificial intelligence-driven solutions and services that help healthcare companies and agencies proactively detect and reduce risks from fraud, waste, and abuse. The Codoxo Healthcare Integrity Suite helps clients manage costs and improve collaboration across payment integrity, special investigation units, provider coding and billing, network management and clinical care teams. Our software-as-a-service applications are built on our proven Forensic AI Platform, which uses a patented AI-based technology to identify problems and suspicious behavior faster and earlier than other AI and rules-based techniques. Our solutions are HIPAA- compliant and operate in a HITRUST-certified environment. For additional information, visit www.codoxo.com.