Artificial Intelligence (AI) has significant potential in healthcare, extending beyond just medical applications. Numerous startups believe that machine learning-based systems can enhance processes like appointment scheduling and confirmations.
One such Brazilian startup, Carecode, is emerging with the aim of lowering healthcare expenses and enhancing medical outcomes. The company is focused on creating AI agents that manage tasks associated with medical appointments, which are typically handled by call centres.
“Many people focus only on the consultation with the doctor, yet after spending a decade in healthcare, I have realised that the moments surrounding this appointment are equally crucial,” stated CEO Thomaz Srougi (depicted right in the image above) during an interview with StartupSuperb.
Although Srougi comes from a lineage of doctors, he is not a medical professional himself. His experience in healthcare stems from founding Dr. Consulta, a private medical service provider that has successfully raised approximately $168 million in funding, where he continues to serve as chairman.
Currently at the beginning of its fundraising efforts, Carecode has already established an impressive capital table. Its $4.3 million pre-seed round was primarily financed by a16z and QED, along with contributions from Endeavor Catalyst, K50 Ventures, and Latitud Ventures. Additionally, notable figures from Brazil’s tech industry have participated, including Nubank founder David Vélez.
While venture capital in Latin America is experiencing a “startup winter”, this pre-seed funding indicates that there remains financial support for entrepreneurs with proven backgrounds, like Srougi and his co-founder, Pedro Magalhães, a former CTO at multiple startups, including BEES Bank Brasil and Zé Delivery.
“This aspect is significant for leading venture capitalists, particularly during challenging times,” Srougi remarked, also expressing that a16z partner Gabriel Vasquez played a crucial role in refining the concept for Carecode and progressing the startup from the planning stage to execution.
Srougi is leveraging the relationships he has cultivated throughout his career to find partners to test Carecode. The early results with a currently undisclosed partner appear promising. The startup claims these findings indicate that its AI agents can replicate the majority of functions performed by a traditional healthcare call centre at a reduced cost, even proactively managing cancelled appointments while allowing staff to focus on more complex cases.
A key consideration for Brazil is that Carecode connects with users through platforms they frequently use, such as WhatsApp, accommodating both text and audio messaging. “This is vital, as older individuals and many low-income users prefer sending WhatsApp audio messages rather than typing,” Srougi noted, highlighting that voice calls are also part of future plans.
These regional adaptations are one factor distinguishing Carecode from American counterparts like Sierra, co-founded by Bret Taylor.
Another distinguishing characteristic is Carecode’s specific focus on the vertical market. Camila Vieira Freitas, a partner and the head of Brazil at QED, believes this gives the startup an advantage over more general approaches which “often require multiple solutions to achieve mediocre outcomes, negatively impacting customer satisfaction and leaving significant opportunities untapped.”
Although market size could pose a restriction for vertical strategies, healthcare in Brazil constitutes a substantial sector, and the challenges Carecode targets are significant. Srougi noted that healthcare organisations in Brazil allocate 50% of their revenue to contact centres and administrative payroll, which totals around $100 billion annually.
Srougi and his team are confident that adopting a vertical model in a niche with unique requirements like healthcare will assist Carecode in establishing a competitive edge over more generalist rivals. However, the startup is also exploring future diversification. “We may expand into insurance, such as life insurance and other areas related to healthcare. We are looking at payment solutions as well. Thus, all these developments spring from healthcare,” he added.
