Coral secures $12.5 million to automate the administrative back office in healthcare.

      The New York startup has developed AI that interprets handwritten fax forms, manages prior authorizations, and processes patient intakes in under five minutes, all while allowing providers to maintain their existing workflows. In less than a year, it has generated several million in revenue and aims for a fourfold increase by the end of 2026.

      Coral, the AI startup based in New York that automates administrative tasks for specialty healthcare providers, has successfully raised $12.5 million in a Series A funding round led by Lightspeed and Z47.

      Founded in 2024 by Ajay Shrihari, a researcher in robotics and AI, along with Aniket Mohanty, who specializes in medical image processing, Coral has achieved annual revenues in the millions within its first year of operation, with a goal of quadrupling this by the end of 2026.

      The challenge that Coral addresses is not one of technological intricacy, but rather the sheer volume of administrative tasks. In the U.S. healthcare system, each appointment generates a series of prior authorization requests, referral packets, insurance eligibility checks, and discharge documents, most of which are still sent via fax—an outdated technology that remains ingrained in clinical practices.

      Instead of trying to eliminate fax systems, which would necessitate a costly overhaul for providers, Coral integrates with existing EHR systems, fax lines, and payer portals, automating processes around them. This means that providers do not need to alter their workflows; Coral enhances the internal functioning of those workflows.

      The company initially focused on the durable medical equipment sector, which heavily relies on fax communications, where a single order may require numerous documentation exchanges prior to approval. DASCO, a home medical equipment supplier, has reported dramatic improvements, with processing times reduced from hours or days to minutes.

      Coral subsequently applied the same model in infusion centers, where a delay in authorizations can lead to missed doses rather than just postponed appointments, as well as in specialty pharmacies. Each new sector displayed similar administrative bottlenecks.

      The core feature of the product lies in its ability to understand documents amidst the chaotic nature of healthcare: from handwritten fax forms and scanned insurance cards to prior authorization templates and payer portal screens. Coral's models have achieved 99.7% accuracy for these document types, a standard the company considers the minimum acceptable level for healthcare, where inaccuracies can have serious clinical and financial repercussions.

      Comprehensive patient intakes, even for complex cases, can now be completed in under five minutes. When information is missing—a common occurrence— the platform collaborates with payers, patients, and referral sources to fill in the gaps without needing staff involvement.

      The most significant indicator of commercial success lies not in the revenue figure but in payment trends. A portion of Coral's clients are paying the full contract amount upfront, which is unusual for enterprise software and particularly noteworthy in an industry where vendor evaluations are often slow and cautious.

      The rationale behind this is straightforward: when a process that used to take hours is completed in less than five minutes with high accuracy, the return on investment is immediately clear. Commit now, eliminate the delays now.

      Coral has recently introduced AI-powered voice and text workflows to automate follow-ups with payers, patients, and referral sources, replacing the need for staff to make phone calls.

      The next stage of product development includes an AI workflow builder that will enable providers to create and implement their own administrative processes without needing IT involvement, as well as a co-pilot feature that surfaces operational insights based on existing data: identifying payers with high denial rates, pinpointing where cases are stalled in the authorization process, evaluating reliable referral sources, and recommending changes to enhance outcomes for insurance claim resubmissions.

      Rohil Bagga, an investor at Lightspeed, noted that the company is “delivering real outcomes at scale” in an industry where traditional automation efforts have often fallen short. Ashwin KP, an investor at Z47, framed the investment strategy around the unique characteristics of healthcare administration, which incurs over a trillion dollars in annual overhead, is chronically underserved by technology, and demands specialized vertical expertise to navigate effectively.

      The Series A funding will support team expansion and product development, with Coral bringing on engineering talent as well as individuals with extensive experience in healthcare operations.