Group health insurance startup, Plum, has raised $15.6 million as a part of its Series A funding led by Tiger Global with participation from existing investors Sequoia Capital India’s Surge, Tanglin Venture Partners, Incubate Fund and Gemba Capital.
Other angel investors who participated as a part of this round include – Kunal Shah, founder, 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 Srivastava, founders of Livspace, amongst others.
With this round, the startup has raised a total of $20.6 million in funding, till date.
According to the company, it will use the funds to further scale its engineering, business development and operations teams.
Founded in 2019, Plum provides an employee health insurance stack by forging underwriting and fraud detection algorithms that allow companies with as few as seven employees to benefit from group insurance.
It also claims to offer employees a hassle-free claims experience through an integrated digital process.
“Plum aims to reach a milestone of 10 million lives insured by 2025, by changing the employee health insurance space. With Plum, we are making the process transparent, affordable and easy, using tech at scale. The adoption of health insurance by startups, SMEs and corporates is increasing exponentially and is further accelerated by the ongoing covid-19 pandemic. We are building Plum to enable a high-quality healthcare experience for every single employee and their family members,” said Abhishek Poddar, co-founder and chief executive officer, Plum.
Plum has onboarded close to 600 organisations, and its client base includes – Groww, Unacademy, Twilio, CleverTap, UrbanLadder, small case, and Simpl, the company said in a statement.
“As India’s healthcare insurance industry rapidly expands and transforms, Plum is well-positioned to make comprehensive health insurance accessible to millions of Indians. We are excited to partner with Abhishek, Saurabh and the Plum team as they scale their leading tech-enabled platform to employers across the country,” said Scott Shleifer, partner at Tiger Global.
Currently, the company estimates the Indian group health insurance market to be almost 50% of the total $3.5 billion health insurance market in the country.
Group health insurance products cover about 90 million Indians but are expected to cover more than 500 million Indians by the end of this decade, according to company estimates.
