Bengaluru-based digital insurance startup Plum raised $15.6m in its Series A funding round led by Tiger Global.
The round saw participation from earlier investors such as Sequoia Capital India’s Surge, Tanglin Venture Partners, Incubate Fund and Gemba Capital, along with CRED’s Kunal Shah, Unacademy founders’ Lalit Keshre, Harsh Jain and Ishan Bansal, Livspace’s Ramakant Sharma and Anuj Srivastava and Hired’s Douglas Feirstein.
A part of the funding will also be used to further scale engineering, business development and operations teams. In addition, the company intends to build insurance products for SMEs that cannot afford to pay annual premiums. It also plans to build deeper API integrations with other insurers like ICICI Lombard, Care Health, Star Health and New India Assurance.
The round comes after Plum raised $5m in seed rounds from Surge, Tangline Venture Partners, Angellist India, Gemba Capital, Tracxn Labs, Incubate India, Sequoia Capital and HHV’s Shrishti Sahu. With this round, the startup has raised a total of $20.6m in funding, to date.
Founded in 2019 by Abhishek Poddar and Saurabh Arora, Plum focuses on employee health insurance stack by forging new underwriting and fraud detection algorithms that allow companies with as few as seven employees to benefit from group insurance. The company claims that the platform’s real-time insurance design and pricing enable its clients to buy insurance in three clicks. It also offers employees a hassle-free claims experience through an integrated digital process.
The company claims to have witnessed a growth rate of 110% quarter-on-quarter (QoQ) by onboarding more than 600 organisations since inception. Its client base includes Groww, Unacademy, Twilio, CleverTap, UrbanLadder, smallcase and Simpl. The company aims to insure ten million individuals by 2025. Furthermore, the startup aims to capitalise on the group health insurance market which is estimated to account for almost half of India’s overall health insurance market, a $3.5bn sector growing at 25% annually.
Commenting on the round, Poddar said, “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.â€
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