Alaffia Health Raises $55M Series B to Expand AI-Driven Claims Operations

Alaffia Health has secured $55 million in Series B financing, led by Transformation Capital with participation from existing investors FirstMark Capital, Tau Ventures, and Twine Ventures. The round brings the company’s total funding to more than $73 million and supports its efforts to address what is estimated to be up to $570 billion in annual administrative waste across the U.S. healthcare system.

Founded in 2020 by siblings TJ Ademiluyi and Adun Akanni, Alaffia Health focuses on applying agentic AI to health plan claims operations, an area under increasing pressure from rising medical costs, regulatory scrutiny, and operational complexity. The company was built on the founders’ firsthand experience in revenue cycle management and aims to deliver savings without introducing compliance risk or straining provider relationships.

Alaffia currently partners with regional and national health plans to scale clinical review capacity and improve efficiency across the claims lifecycle. By pairing expert clinicians with AI that evaluates claims against the complete patient medical record, the platform supports faster and more consistent decision-making. According to the company, its solutions have delivered millions of dollars in medical cost savings, reduced turnaround times from weeks to days, and generated more consistent findings. Alaffia reports average savings of more than 20% on high-cost facility claims and a return on investment exceeding five times for participating health plans.

“Health plans are under immense pressure to reduce administrative costs and drive affordability for their members, and like many industries, they’re starting to see the value of emerging AI solutions,” said TJ Ademiluyi, co-founder and CEO of Alaffia. “With this funding, we’re expanding our team and platform so we can continue solving some of the most expensive operational challenges in healthcare and ultimately reduce the burden on the system as a whole.”

The new capital will be allocated across research and development, product innovation, and growth initiatives. Alaffia plans to advance its AI and engineering capabilities, launch new AI agents across additional modalities, and scale adoption across the healthcare ecosystem. The company also intends to expand hiring across engineering, product, and growth teams. As part of the financing, Todd Cozzens, managing partner at Transformation Capital, has joined Alaffia’s board of directors.

“Payment integrity is one of the most untapped opportunities in healthcare,” Cozzens said, adding that Alaffia’s platform “can scale beyond payment integrity to become foundational infrastructure for health plans.”

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