Lotus Health Secures $35M Series A to Scale AI-Powered Primary Care Platform

An increasing number of users are consulting large language models (LLMs) such as OpenAI's ChatGPT for medical advice, often receiving surprisingly accurate health insights. KJ Dhaliwal, who previously exited the South Asian dating application Dil Mil in a $50 million acquisition in 2019, has been focused on addressing inefficiencies in the U.S. healthcare system since childhood, when he served as a medical interpreter for his parents. The emergence of advanced LLMs presented an opportunity to tackle these systemic challenges.

In May 2024, Dhaliwal launched Lotus Health AI, a free-to-use primary care platform offering 24/7 access in 50 languages. The company announced on Tuesday that it has raised $35 million in Series A funding co-led by CRV and Kleiner Perkins, bringing total capital raised to $41 million.

While consumers are already leveraging AI for health consultations, Lotus Health extends beyond conversational interfaces to deliver comprehensive medical services including diagnosis, prescription management, and specialist referrals. The platform operates as a fully licensed medical practice across all 50 U.S. states, complete with malpractice insurance, HIPAA-compliant infrastructure, and integrated electronic health record (EHR) access.

AI-Driven Clinical Workflow with Human Oversight

The core differentiation lies in Lotus Health's AI-powered clinical workflow, which is trained to conduct patient interviews using the same diagnostic protocols employed by human physicians. Given the known propensity for AI models to generate hallucinations or inaccurate outputs, the company implements a mandatory review process where board-certified physicians from institutions including Stanford, Harvard, and UCSF validate all diagnoses, laboratory orders, and prescriptions before finalization.

According to Dhaliwal, "AI is generating the clinical recommendations, but licensed physicians are providing the final sign-off." The platform's AI model synthesizes evidence-based medical research with individual patient history and clinical data to formulate treatment plans, similar to methodologies employed by platforms like OpenEvidence.

Operational Constraints and Regulatory Compliance

Lotus Health acknowledges the limitations inherent in virtual care delivery. For acute medical emergencies, the platform directs patients to nearby urgent care facilities or emergency departments. Cases requiring physical examination are referred to in-person healthcare providers.

Delegating significant portions of clinical decision-making to AI represents a substantial regulatory challenge, particularly given state-specific medical licensing requirements that restrict physicians to practicing only in jurisdictions where they hold active licenses. However, CRV General Partner Saar Gur, who led the investment round and joined the board, believes the telemedicine frameworks established during the COVID-19 pandemic, combined with recent AI advancements, enable Lotus to navigate these regulatory complexities.

"There are numerous challenges, but this isn't SpaceX launching astronauts to the moon," stated Gur, an early-stage investor in DoorDash, Mercury, and Ring. For Gur, the appeal lies in Lotus Health's attempt to fundamentally restructure the primary care delivery model.

Market Position and Competitive Landscape

Amid a documented shortage of primary care physicians, Lotus Health claims its AI-augmented model can serve 10 times the patient volume of traditional practices, even when limiting consultation duration to 15 minutes. While competitors such as Lightspeed-backed Doctronic are developing similar AI-driven medical platforms, Lotus differentiates itself by offering completely free access to patients.

Dhaliwal indicated that potential monetization strategies may include sponsored content or subscription models, but the current strategic priority remains product development and patient acquisition rather than revenue generation.

Key Platform Features:

• Multilingual support in 50 languages

• Full medical licensing and malpractice insurance coverage

• HIPAA-compliant infrastructure

• Board-certified physician oversight for all clinical decisions

• Integration with electronic health records

• Diagnostic services, prescription management, and specialist referrals