Plum Funding: Tiger Global leads funding for health insurance start-up Plum
Existing investors such as Surge from Sequoia Capital India, Tanglin Venture Partners, Incubate Fund and Gemba Capital also participated in the fundraising, as did several angel investors including Kunal Shah (Founder, Cred); Gaurav Munjal, Roman Saini and Hemesh Singh (founders, Unacademy); Lalit Keshre, Harsh Jain and Ishan Bansal (founders, Groww); Ramakant Sharma and Anuj Srivastava (founders, Livspace); and Douglas Feirstein (co-founder, Hired).
Plum Benefits will use this funding to evolve its engineering, business development and operations teams, according to a statement released on Monday. The health insurance startup is developing new products for small businesses, which have small teams and cannot afford to pay annual premiums in partnership with licensed insurers.
The company is also considering deeper integrations with insurers such as ICICI Lombard, Care Health, Star Health and New India Assurance.
Founded in 2019 by Abhishek Poddar and Saurabh Arora, Plum Benefits specializes in health insurance support for small businesses and startups. It claims to have integrated over 600 organizations including Groww, Unacademy, Twilio, CleverTap, Urban Ladder, smallcase, and Simpl.
“Plum aims to reach the milestone of 10 million insured lives by 2025, by changing the space for employee health insurance. With Plum, we make the process transparent, affordable and easy, using technology at scale, ”said Poddar, who is also the CEO of the company. “The adoption of health insurance by startups, SMEs and businesses is growing exponentially and is further accelerated by the current Covid-19 pandemic.”
According to Scott Shleifer, Partner at Tiger Global, Plum is well positioned to capitalize on the growing demand for employee and staff health coverage. “As India’s health insurance industry grows and transforms rapidly, Plum is well positioned to make comprehensive health insurance accessible to millions of Indians.”
Group health insurance is estimated to account for almost half of the overall health insurance market in India, a $ 3.5 billion industry growing at 25% per year. About 9 Indian crores are covered by various group health blankets, and that figure is expected to rise to 50 Indian crores by the end of this decade, according to the company.