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Alaffia Health has secured $55 million in Series B funding to accelerate the deployment of its agentic AI platform to tackle healthcare’s waste problem.
The Series B round was led by Transformation Capital, with FirstMark Capital, Tau Ventures, and Twine Ventures also participating.
The startup will use the new funding to accelerate growth, launch new AI agents, and increase research and development.
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Alaffia is Delivering Savings and Efficiency for Health Plans
Alaffia was founded in 2020 by siblings TJ Ademiluyi (CEO) and Adun Akanni (COO) to solve the administrative inefficiencies in healthcare. Every year, health plans lose as much as $570 billion due to slow claims processing, higher medical costs, and complex regulations. Many still use manual clinical reviews, which are time-consuming, increase compliance risks, and can lead to conflicts with providers.
Ademiluyi told TFN, ” My co-founder and sister, Adun, and I grew up in a family business focused on provider revenue cycle management, so we saw firsthand how often medical claim payments from payers were made without a full clinical context, leading to waste, abuse, and inaccurate payments. We started Alaffia to bring greater accuracy, transparency, and clinical rigour to those decisions, so health plans can reduce waste without increasing risk or eroding trust.”
However, the New York-based startup pairs AI and expert clinicians to improve claims accuracy, reduce administrative waste, and enhance payment integrity. The platform uses “agentic AI” to review the entire patient’s medical records, compare them with the claim, and verify the findings.
This hybrid model addresses the “trust gap” in AI. “Healthcare doesn’t need more automation that no one can explain—it needs AI that clinicians, operators, and regulators can trust,” said Adun Akanni, co-founder and COO. By offering traceability and transparency, Alaffia aims to avoid the regulatory backlash currently facing AI-only denial algorithms.
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The Impact of Alaffia and How it has Fared So Far
Currently, Alaffia partners with leading regional and national health plans to help them scale clinical review capacity and unlock significant savings. The startup has delivered millions of dollars in medical cost savings, reduced turnaround times from weeks to days, and improved consistency across findings.
Its solutions have delivered 20%+ average savings on high-cost facility claims and 5x+ ROI for leading health plans. So far, Alaffia has saved health plans more than $100 million.
The healthcare startup differs from older payment integrity tools and less transparent AI solutions by delivering clear, measurable results. Compared to competitors like Cohere Health, Olive (which closed), and PreFi, Alaffia supports the full claims lifecycle.
“Our approach is different because we combine transparent AI with clinical oversight. That balance allows us to work within complex payer rules, deliver high clinical accuracy, and produce outcomes that health plans, providers, and regulators are comfortable standing behind,” Ademiluyi said.
Looking Ahead for Alaffia
Alaffia plans to use the new capital, which brings its total funding to more than $73 million, to accelerate growth across three core areas. The company will advance its AI, engineering, and product development, launch new AI agents across additional modalities to expand platform capabilities, and scale AI adoption to meet rising demand across the healthcare ecosystem.
Additionally, Todd Cozzens, Managing Partner at Transformation Capital, has joined Alaffia’s Board of Directors as part of the financing. “Payment integrity is one of the most untapped opportunities in healthcare, in part because payers are harder to build for due to their complex and diverse rule sets,” said Todd Cozzens, Managing Partner at Transformation Capital.
“Alaffia has built a core clinical review platform that is already delivering millions in savings and can scale beyond payment integrity to become foundational infrastructure for health plans. By reducing administrative waste and improving accuracy across claims operations, Alaffia ultimately helps lower costs for health plans — creating a more affordable healthcare system for consumers,” he added.
Alaffia’s platform is built for real-world payer environments, prioritizing traceability, configurability, and clinical oversight, setting it apart from legacy vendors and AI-only solutions.
With 97%+ accurate clinical fact extraction and flexible software-as-a-service and managed services delivery, the startup brings confidence and consistency to healthcare’s most complex workflows.
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“Healthcare doesn’t need more automation that no one can explain — it needs AI that clinicians, operators, and regulators can trust,” said Adun Akanni, co-founder and COO at Alaffia. “We founded Alaffia to bring transparency and clinical rigor to claims operations, and this funding allows us to scale that mission as we help health plans reduce waste and operate with confidence.”
Main Image: Alaffia Team. Image Credit: Alaffia
