Existing investors such as Sequoia Capital India’s Surge, 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 the funding to scale its engineering, business development and operations teams, according to a statement on Monday. The health insurance startup is building 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 looking at 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 specialises in providing health insurance support to small businesses and startups. It claims to have on boarded more than 600 organisations including Groww, Unacademy, Twilio, CleverTap, Urban Ladder, smallcase and Simpl.
“Plum aims to reach a milestone of 10 million lives insured by 2025, by changing employee health insurance space. With Plum, we are making the process transparent, affordable and easy, using tech at scale,” Poddar, who is also the chief executive officer of the firm. “The adoption of health insurance by startups, SMEs and corporates is increasing exponentially, and is further accelerated by the ongoing Covid-19 pandemic.”
According to Scott Shleifer, partner at Tiger Global, Plum is well positioned to capitalise on the growing demand for employee and staff health covers. “As India’s healthcare insurance industry rapidly expands and transforms, 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 India’s overall health insurance market, a $3.5-billion sector growing at 25% annually. Around 9 crore Indians are covered by various group health covers, and this is expected to increase to 50 crore Indians by the end of this decade, according to the company.