Plum, a Bengaluru based group health insurance startup has raised INR 7 Crores in seed funding. The round was led by Incubate Fund with participation from Gemba Capital and Tracxn Labs along with angel investors including Abhijit Gupta and Ram Sahasranam of Praxify Health, Sudheendra Chilappagari of Belong.co, Nitin Jayakrishnan of Pando and Alvin Tse of Xiaomi.
Plum is on a mission to enable employee health insurance for over 1.1 million companies in India by reinventing how health insurance works. The company plans to use the funding to scale business & engineering teams. Within just 4 months of launch, Plum has managed to get over 100 companies as customers. These companies include startups like Fampay, StayAbode, Posist, Jiny, RevvSales, Swiflearn, The Label Life, and GrowFit, MNCs like Twilio, Instawork and Livongo, and traditional companies like Lambda Group, Sunidhi Group, Rosmerta Group. The startup is aiming to get to 10,000 companies in the next two years.
Plum, through its online platform, provides employers & employees with customizable plans and transparent pricing. The platform understands the needs of a corporate and guides them on setting up their group health insurance in less than 60 mins. Plum additionally helps employees with improved health benefits including doctor consultations, health check-ups, fitness & yoga, mental wellness, nutrition and dental care. The platform enables ease of experience for employees with guided claims support. Plum has an insurance intermediary license from IRDA. Taking the current situation into account, Plum also offers COVID-19 cover as an offering to its customers, however big or small they are.
India is a country with one of the lowest health insurance penetration, with only 18% of people in urban areas and 14% in rural areas covered under any kind of health insurance scheme.
“With Plum, we started questioning every aspect of the group health insurance market. Why can’t we give group health insurance to companies as small as 7 employees?” says Abhishek Poddar, co-founder and CEO, Plum. “We are on a mission to fix health insurance and health benefits. We are building a modern health benefits company that understands the needs of a corporate and guides them to smart choices. We are improving health benefits by providing employers & employees with more flexibility, transparent pricing, and higher quality healthcare experience.”
The group health insurance market in India, which is almost 50% of the total health insurance market, is expected to grow to INR 100,000 crores by 2025. It has seen an annual growth of about 25% in the last few years and is doubling every three years, the startup shared in a note.
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