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A Melbourne-based healthcare startup that helps National Disability Insurance Scheme (NDIS) participants track their funds and access an online marketplace of 27,000 vetted providers has secured $4 million in a pre-seed funding round led by AirTree Ventures.
Kismet’s raise also saw participation from venture capital firms Black Nova and Flying Fox, as well as AirTree co-founder Daniel Petre.
Founded in 2022 by Mark Woodland, Sam Armstrong, Stefan Cordiner, Lauren Grimes and Matt Ellis, Kismet offers support plans and fund management for NDIS participants and connects patients with approved providers to combat issues like fraud and non-compliance.
Prior to building the company, the founders worked together at childcare management software company Xplor, which automates administrative tasks such as enrolments, attendance, invoices and payments for operators. In 2020, Xplor was acquired by US private equity investor Advent International in a deal reportedly worth $100 million.
“Improving access to healthcare is one of the most important challenges of our generation. Industry and government need to work hand-in-hand to simplify access and stamp out bad actors to ensure everyone has access to one of our most basic needs,” said Woodland, who also founded Xplor.
“We saw the same problems of fraud, inefficiencies and friction in childcare a decade ago. Through Xplor, we worked with the government to stamp out $3 billion in fraud, and are now looking to do the same for healthcare.
“We see huge potential to address challenges across healthcare, and while we have our eyes set on the NDIS first, we will be able to scale our tech globally to help millions worldwide access the care they need.”
According to Australian Criminal Intelligence Commission chief Michael Phelan, misuse of NDIS funds could be a $6 billion problem for Australia, with providers charging for false services, overcharging patients, billing additional commissions and more.
To tackle that, Kismet has a digital check-in system that legitimises customer attendance, ensuring the services that the NDIS has paid for are being provided.
The NDIS is expected to cost almost $42 billion in the 2023/24 financial year, rising to almost $56 billion by 2026/27. In order to manage savings, the government is looking to crack down on fraud within the scheme, which is expected to cut down costs by around $15 billion.
“I think it is natural that for his first venture since Xplor, Mark and his founding team return to the theme of connecting communities of people by reducing administrative burdens allowing them to focus on what matters most - their families’ health. As we face an increasingly ageing population, this change is well overdue,” investor Petre said.
“Mark is a visionary leader who revolutionised the way families, educators and children engage with education when he founded Xplor - by bringing community and brand to an industry in which neither existed before,” AirTree Ventures partner Elicia McDonald added.
“We understand how difficult it is to build something like this and we love seeing repeat founders build on past successes from lessons learned. For Mark, the successes and lessons are plenty and we are excited to go on this journey with him and his team building the future of health.”
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