Plum, a group health insurance start-up has raised a $15.6 million in Series A led by Tiger Global. The fundraise saw participation from earlier investors, Sequoia Capital India’s Surge, Tanglin Venture Partners, Incubate Fund and Gemba Capital.

Angel investors in 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), and Douglas Feirstein (founder of Hired). Plum has raised $5million in earlier rounds last year.

The funds raised will be used to scale up engineering, business development and operations teams.

New products

The company is building newer insurance products for SMEs who have teams as small as 7 employees and cannot afford to pay annual premiums. Plum is additionally looking at building deeper API integrations with leading insurers like ICICI Lombard, Care Health, Star Health and New India Assurance.

Also read:Fintech start-up Jai Kisan raises ₹217 crore in Series A funding

“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 start-ups, 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 CEO, Plum, in a statement.

The group health insurance market in India, which is almost 50 per cent of the total $3.5 billion health insurance market, has seen an annual growth of about 25 per cent in the last few years and is doubling every three years. 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.

With over 600 organisations on-boarded, Plum claims it has been witnessing a growth rate of 110 per cent quarter-on-quarter and leads the industry with a Claims NPS of 79. Plum’s client base include SMEs, corporates and fast-growing start-ups including Groww, Unacademy, Twilio, CleverTap, UrbanLadder, smallcase and Simpl.

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