Penguin Ai Raises $29.7M to Scale Healthcare Administrative Automation Platform

Penguin Ai, an AI-enabled healthcare administrative automation company, has closed $29.7 million in venture funding, including a $25 million Series A round led by Greycroft. The substantial investment signals growing confidence in AI solutions to address the healthcare industry's persistent administrative burden, which costs billions annually and diverts resources from patient care.

The funding round attracted a diverse consortium of strategic investors, including UPMC Enterprises, Snowflake Ventures, SemperVirens, Horizon Mutual Holdings, and Watershed Ventures, along with participation from the parent company of New Jersey's largest and oldest health insurer. Existing investors ManchesterStory and Overwater Ventures reinforced their commitment, joined by the California Health Care Foundation and Matt Kozlov of Multiball Capital, demonstrating broad-based support for Penguin Ai's vision.

Founded in 2024, Penguin Ai has developed an agentic AI platform that targets critical administrative pain points across the healthcare ecosystem. The platform streamlines complex workflows including medical coding, claims scrubbing, billing review, claim appeals management, and chart summarization—areas where manual processes have traditionally created bottlenecks and errors. The company plans to deploy the new capital to expand its workforce, accelerate product development, and scale operations to serve more payers and providers nationwide.

"The healthcare industry is plagued by inefficiencies and is spending billions on administrative tasks annually," said Fawad Butt, founder and CEO of Penguin Ai and former chief data officer of UnitedHealthcare, Kaiser Permanente and Optum. "By harnessing the power of generative AI, we can significantly reduce these costs, improve accuracy, and unburden valuable resources so payers and providers can focus on delivering quality care to patients."

Butt's extensive experience leading data initiatives at major healthcare organizations positions Penguin Ai to navigate the complex requirements of both payers and providers. His background at UnitedHealthcare, Kaiser Permanente, and Optum provides crucial insights into the operational challenges these organizations face daily.

Penguin Ai enters a competitive market alongside companies like Notable Health, which automates patient interactions including scheduling and payment collection, Suki with its AI-backed voice tools, Keragon's healthcare automation platform, and Lamar Health's AI-powered automation solutions. However, Penguin Ai's focus on comprehensive administrative workflow automation and its strong backing from both venture capital and strategic healthcare investors suggests the company is well-positioned to capture significant market share in the rapidly evolving healthcare AI landscape.

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