SPRY: Powering Physical Therapy Clinics With AI-Driven SaaS

We are very excited to introduce you to our newest portfolio company, SPRY, the innovator behind physical therapy's first AI-driven practice management platform. Flourish led the $15 million round announced today that will fuel its rapid expansion across the United States. We feel privileged to back the founders, Brij Bhuptani (pictured above, left) and Riyaz Rehman (right), and to join investors Together Fund, Eight Roads, and F-Prime that have supported the company since its inception. 

SPRY aims to follow the path of several vertical SaaS success stories that have shown the power of combining workflow software for underserved markets with embedded finance solutions. This is an area of focus for our firm. Companies like ServiceTitan in home services, Toast in restaurants, Procore in construction, and our portfolio company CurbWaste in waste management exemplify this trend. These companies thrive by simplifying complex workflows and using data to offer financial services like billing, payments, and lending, boosting customer retention and long-term value. As shown by Toast's $40 billion in gross payments volume earlier this year, financial services can drive the majority of revenue for vertical SaaS leaders.

SPRY is focused on the physical therapy and musculoskeletal care market, valued at approximately $52 billion. Job openings for physical therapists are projected to grow 15% over the next decade, driven by an aging population, more surgeries requiring rehab, chronic conditions, and rising insurance costs. While physical therapy is offered in various settings, over 70% of patients prefer in-person outpatient clinics, dominated mainly by small chains, and MSK care continues to rely heavily on in-person treatment despite the rise of digital health.

Software designed for physical therapy clinics isn't new, but earlier solutions focused more on clinical workflows than on the financial and business aspects of running clinics. Today, physical therapy chains of all sizes seek ways to cut costs and improve insurance reimbursements in the payer-provider model. Clinics face operational challenges, including low insurance reimbursement rates—typically 20%-30% of the amount billed—and long payment delays, often over 90 days. As a result, physical therapists often shift to cash-only models.

Beyond insurance reimbursement, clinics' limited access to specialized financial services reflects the broader access to finance challenges faced by many small businesses. As we spoke to clinic operators nationwide, we identified significant demand for payroll and accounting management, payments automation, credit (including receivables financing and equipment financing), and insurance automation and customization (including PT-specific provider liability insurance). 

To address these challenges, SPRY has built a full-stack platform for clinics to manage finance, operations, and patient success seamlessly. In 18 months, SPRY has revolutionized how its customers operate, earning the trust of more than 105 clinics across 30 states. Its user-friendly software has not only simplified clinic operations but also improved their financial health. 

SPRY offers a comprehensive end-to-end solution covering scheduling, electronic medical records, billing, payment processing, and patient engagement. It goes beyond basic billing with automated claims filing and management and incorporates generative AI-enabled tools, such as in the generation of clinical Subjective, Objective, Assessment, and Plan notes. Designed with flexibility in mind, the software allows for seamless integration of additional functionality as needed.

SPRY has helped boost insurance claim reimbursements by 30%+ and accelerated receivables by 40%+ for its customers. With a focus on data, integration, and AI, it has consistently achieved a 90% claim rate on first submission and collected over $40 million for its growing customer base. 

An outsider's perspective to innovate for physical therapists

Brij and Riyaz founded SPRY with a team from India despite neither being physical therapy specialists themselves. To bridge this gap, they brought in U.S. insurance industry veterans and experienced physical therapists, including former clinic owners, to develop what is quickly becoming a leading solution in the U.S. PT space. Both bring the outsider orientation to innovating in a space that, while it has had software solutions, needed to be reimagined from the ground up to improve business outcomes in balance with clinical outcomes. 

Recently, SPRY was named the top physical therapy software solution by G2, the leading SaaS recommendation site. SPRY earned badges for both physical therapy and medical billing in the areas of user support, customer relationships, and user recommendations.

SPRY is part of a growing movement of companies with deep technical and domain-specific backend expertise in India with a business focused on the U.S. market. This movement includes notable players like Freshworks and Zoho. These companies combine India's cost advantages and engineering talent with a sharp focus on solving specific business challenges for a more mature U.S. software market.  

We are thrilled to be part of SPRY's journey and contribute to its growth at such a pivotal moment. Joining an impressive board composed of industry leaders and experts, we are committed to helping guide the company as it enters its next chapter of innovation and expansion.

https://economictimes.indiatimes.com/tech/funding/software-as-a-service-startup-spry-therapeutics-secures-15-million/articleshow/114074162.cms?from=mdr