Codoxo, an Atlanta-based provider of healthcare AI solutions, closed a $20 million oversubscribed Series B funding round which will be leveraged to expand its customer base, improve the functionality of its products and accelerate hiring. This round brings the company’s total funding to about $30 million.
The funding was led by QED Investors, who also participated in Codoxo’s Series A round in 2020. QED investors have helped 23 small and mid-size companies become unicorns and currently have approximately $4 billion under management.
New investors in the round of funding include 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.
The funds will be used to meet the growing demand for its technology and expand into the Pharmacy Benefit Managers market. Codoxo will also be accelerating its hiring efforts across all teams with an emphasis on talent with payment integrity experience. The company currently employs 45 people and anticipates doubling to 90 by the end of the year.
Codoxo’s products assist healthcare payers and government agencies identify fraud and payment integrity issues for health insurance. Its current product line, collectively called the Healthcare Integrity Suite, comprises Fraud Scope, Payment Scope, Provider Scope, Audit Scope, Insight Scope, Network Scope and Clinical Scope.
“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,” said Matt Risley, Partner at QED Investors, in a news release.
The company was founded in 2017. It grew out of Georgia Tech, where founder Musheer Ahmed received his Ph.D. in computer science. He specialized in healthcare security, with a focus on how to address health care fraud abuse.
Codoxo has thus far successfully identified $500 million in fraud that resulted in savings for customers.
The company currently has 32 employees based in the metro-Atlanta area.
