French health insurance firm Alan raised $220m in a Series D funding round led by Coatue, with a valuation at $1.67bn.
The new funding round will help Alan develop its healthcare product while also integrating everything from APIs, payroll integration, automation and concierge services to its suite of offerings. It is also seeking to add new sectors including hospitality, retail and manufacturing.
Furthermore, the firm intends to speed up its growth plans. The 350-staffed company plans to bring 400 new employees over the next 12 months. It will also further its international expansion plans having already added Belgium and Spain to its roster last year.
The company previously raised $54m from Index Ventures and Temasek in April 2020. Since then, Alan doubled its member base to 155,000 and is aiming for one million members in Europe by 2023. Its clients include WeWork, Deliveroo, JustEat, Vitaliance and Big Mamma among other big players. The company surpassed $120m in annualised revenue.
Alan provides health insurance plans to companies of all sizes – from startups to large enterprises – and combines its health insurance offering with access to personalised health care information, proactive care, care delivery, payment and post-care.
As France’s healthcare system allows for both national healthcare coverage as well as coverage by private companies, Alan sells its products to others firms so its employees can be automatically covered by Alan contracts.
While the company still has enough in its bank for another 12 to 18 months, Alan will require to raise more money if it aims to insure more people to comply with French capital requirements.
Commenting on the new round, Alan CEO Jean-Charles Samuelian-Werve said, “In a post-pandemic world, our role as a trusted partner will be to re-engage individuals with the healthcare system. For us, this means being; personalised and tailored to each person’s needs, able to offer the best price possible and relieving financial stress, incredibly fast at delivering accurate answers on health and wellbeing and proactive when providing decisive medical guidance to everyone.
“We are achieving this by relentlessly investing in innovation making sure our members love our product. This encourages preventive health behaviours and results in higher engagement and satisfaction with our members’ health services. This is what we call the Alan effect and our strategy is to amplify it for as many people as possible.”
The insurance firm aims to compete with legacy operators like AXA and Generali, to capitalise on the €50bn French insurance market.
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