Indian health insurance startup Plum raises $ 15.6 million in investment led by Tiger Global

0
27

[ad_1]

The vast majority of people in India, the second most populous country in the world, do not have health insurance. A large proportion of the population with insurance coverage receives it from their employers.

plum, a fledgling startup that is making it easier and more affordable for more companies in the country to insure its employees, said Monday that it raised $ 15.6 million in Series A funding to accelerate its growth.

Tiger Global spearheaded a new round of funding with existing investors Sequoia Capital India’s Surge, Tanglin Venture Partners, Incubate Fund and Gemba Capital. TechCrunch reported earlier this year, Plum was in talks with Tiger Global for a new round of funding.

Kunal Shah (founder of Cred), Gaurav Munjal, Roman Saini and Hemesh Singh (founders of Unacademy), Lalit Keshre, Harsh Jain and Ishan Bansal (founders of Groww), Ramakant Sharma and Anuj Shrivastava (founders of Liviredspace) and Douglas Feirstein (founder of Hirstein) took part in a new round, as a result of which the amount of profit received by the startup a year and a half ago amounted to $ 20.6 million.

Plum offers B2B2C health insurance. The startup is partnering with small businesses to provide health insurance for all of its employees (and their families), charging just $ 1 a month from an employee.

Image credits: plum

“The startup has developed an insurance package from scratch and partnered with insurers to include additional coverage for pre-existing diseases and dentistry,” Abhishek Poddar, co-founder and CEO of Plum, told TechCrunch.

(Similar to fintech companies that partner with banks and NBFC to provide loans to customers, online insurance startups partner with insurers to provide health insurance. Plum partners with ICICI Lombard, Care Health, Star Health, and New India Assurance.)

Poddar, who has worked at Google and McKinsey, said Plum is making it increasingly accessible and attractive to companies by choosing a startup as its partner. Most of the insurance companies and online aggregators in India today serve consumers. There are very few players who are in business. Even among those who do, they tend to be more expensive and less flexible.

Plum offers employees of its client partner the opportunity to top up their health insurance or extend it to additional family members. Unlike its competitors, which require all premiums to be paid annually, Plum gives its customers the option to pay every month. Registration of the entire company with Plum takes less than an hour.

Speed ​​is a key differentiator for Plum. Small businesses usually have to spend months negotiating with other insurers. Bangalore-based Razorpay has also partnered with Plum to provide fintech startup customers with three clicks in one minute to sign up for coverage.

Estimated cost of distribution for insurers through various channels in India. Image credits: Bernstein, BCG

The startup plans to use fresh capital to further expand its offerings by making its platform open to small businesses with teams of seven or more who can sign up, Poddar said. The startup plans to reach 10 million people in India with insurance by 2025 and eventually expand into international markets, he said.

In India, the insurance market is underdeveloped. In a recent report, Bernstein analysts wrote that in an underdeveloped environment, digital distribution through web aggregators now accounts for only 1% of the industry.

“As the health insurance industry in India is rapidly expanding and transforming, Plum is well placed to make comprehensive health insurance available to millions of Indians. We are delighted to partner with Abhishek, Saurab and the Plum team as they scale their leading technology platform for employers across the country, ”said Scott Schleifer, partner at Tiger Global, in a statement.

Plum is Tiger Global’s latest investment in India this year. The hedge fund, which has supported over 20 Indian unicorns, has become most active investor in Indian startups in recent months, winning the founders with their investment rates, the size of the check and favorable terms. Last week the firm invested in Indian social network Koo

[ad_2]

Source link