Coral, a healthcare automation company based in New York, has raised $12.5 million in seed funding to help specialty medical practices cut through the paperwork that continues to bog down US healthcare operations.

The round was led by Lightspeed Venture Partners and Z47 (formerly Matrix Partners India).

Proceeds will be used to expand the engineering team, strengthen domain expertise in clinical operations, and accelerate customer growth among specialty providers.

Founded in 2024 by AI engineers Ajay Shrihari and Aniket Mohanty, both IIT Hyderabad alumni and former founding team members at LimeChat, Coral has built an AI platform that integrates directly with existing electronic health record (EHR) systems, fax servers, payer portals, and email inboxes.

Rather than forcing providers to replace legacy infrastructure, the company’s agents automate repetitive administrative tasks that still rely heavily on manual processes.

Targeted at specialty practices such as durable medical equipment suppliers, infusion centers, radiology groups, and specialty pharmacies, Coral handles end-to-end workflows including patient intake, referral processing, prior authorizations, insurance verification, benefits checks, and complex billing documentation, including handwritten faxes that can run hundreds of pages.

Early customers have reported strong results.

The platform achieves 99.7% accuracy on healthcare-specific documents, compared with roughly 52% for general-purpose AI tools, and reduces patient intake processing time from up to 30 minutes to under 5 minutes.

“Legacy automation tools have struggled in healthcare because they tried to rebuild everything from scratch,” said Ajay Shrihari, co-founder and CEO.

“We meet providers where they are. Our agents work inside the messy, fragmented systems that actually exist today, delivering measurable value on day one without requiring a full technology overhaul.”

Shrihari added, “Every person in the healthcare system, clinicians, staff, and patients, is slowed down by the same administrative burden. The people should not be doing this work, and patients should not have to wait because of it.”

The investment reflects growing investor confidence in AI solutions that deliver immediate return on investment in healthcare operations, where administrative costs run into the hundreds of billions of dollars annually.

Both Lightspeed and Z47 highlighted Coral’s pragmatic approach and rapid early traction.

With the new capital, Coral plans to grow its team of engineers and clinical operations specialists, launch a custom AI workflow builder, and introduce an operational co-pilot to help practices analyze claim denials and referral trends.

The company is headquartered in New York and operates under the domain trycoral.ai.

Details in this report are based on the company’s public announcement and statements from the founders and investors.