By Tony Lawson
Alaffia Health has raised $55 million in Series B funding, led by Transformation Capital, bringing the company’s total capital raised to $73 million.
The raise underscores growing investor interest in healthcare infrastructure companies focused on the operational systems that determine how care is reviewed, paid for, and governed.
While consumer-facing health innovation often dominates attention, much of healthcare’s cost structure remains embedded in administrative workflows, particularly claims review and payment integrity.
From Personal Exposure to Platform Development
Founded in 2020 by siblings TJ Ademiluyi and Adun Akanni, Alaffia Health emerged from firsthand exposure to the complexity of healthcare billing and revenue cycle operations.
The founders grew up watching their parents build a provider revenue cycle management business, gaining early insight into the inefficiencies faced by providers, payers, and vendors across the system.
Prior to launching Alaffia, Ademiluyi worked at Goldman Sachs, where he evaluated investments across multiple industries. According to the company, the decision to build Alaffia was driven by a desire to apply technology to healthcare operations in a way that could produce measurable, system-level impact.
AI Built for Claims Operations
Alaffia Health develops AI-driven tools designed to support health plan claims operations, with a focus on complex and high-cost claims.
The platform is intended to assist clinical and administrative teams by evaluating claims against underlying medical records, identifying inconsistencies, and supporting review workflows that require clinical judgment and regulatory defensibility.
Rather than positioning itself as a front-end automation tool, Alaffia focuses on the internal decision-making processes that govern utilization management, payment integrity, and post-payment review.
According to the company, the goal is to reduce billing errors, administrative burden, and unnecessary waste while improving the speed and consistency of claims adjudication.
Why Investors Are Paying Attention
Transformation Capital’s participation reflects continued interest in healthcare companies operating deep within regulated workflows, where trust, explainability, and integration matter as much as technical capability.
As health plans face increasing scrutiny around both cost control and fairness, tools that support transparent, auditable decision-making are becoming increasingly important.
While performance metrics cited by the company vary by deployment, Alaffia positions its technology as infrastructure for improving accuracy and efficiency in claims operations, rather than as a consumer-facing product.
Use of Funds
Alaffia Health plans to use the new capital to expand its product and engineering teams, advance its AI capabilities across additional claims workflows, and scale deployments with health plans nationally. A representative from Transformation Capital will join the company’s board as part of the investment.
A Broader Signal
The $55 million raise highlights a broader shift in health tech investment toward the operational backbone of healthcare.
As administrative systems continue to shape cost, access, and outcomes, companies focused on improving how decisions are made behind the scenes are increasingly attracting attention and capital.
For Alaffia Health, the next phase will be defined by execution at scale and the ability to translate technical capability into durable operational trust within one of healthcare’s most complex domains.
