Bengaluru-based Group Insurance start-up Plum has been funded $15.7 Million by New York-based Investment firm Tiger Global. The 15 months old start-up has raised more than $20 million (including seeding round) to date.
Plum has approved the allotted 37,970 Series A preference shares at an issue price of Rs. 29,976.83 per share to raise Rs 113.82 crore or $15.7 million to Tiger Global, regulatory filings.
Excluding Tiger Global, the remaining amount was invested by AngelList, Meyer Keith Ventures, and angels’ investors, including Gaurav Munjal, Kunal Shah, Maninder Gulati, Ashish Tulsian, Roman Saini and Hemesh Singh.
Incorporated in early 2020, Plum hit the market with the aim to reinvent how group insurance works in India and make it simple, affordable, and accessible in Indian start-ups and SMEs.
As per the recent report, India currently has one of the lowest penetration rates for health insurance globally, with only 18% of urban employees and 14% of rural areas.
The group health insurance market in India is projected to grow to $13.4 billion by the end of 2025 and will see the rise of innovative insurance products not available in advanced markets. Plum targeted to provide 700 million people with employer-sponsored insurance and become the de facto health insurance platform for more than one million corporates in India. In this race, some other competitors of plum are Secure Now, PazCare, Onsurity, and Nova. We have bifurcated the current shareholding structure of the co-founders and other investors.
Co-founders Abhishek Poddar and Saurab Arora hold an equal stake of 26.45% in the start-up. Their collective stake has come down from 66.2% to 52.9% in this fundraising. Tiger Global has acquired an 11.68% stake in the company, while existing investors Sequoia Surge, IF India and Tanglin, now hold 9.6%, 9.15%, and 8.64% stake, respectively.
The platform has partnered with best-in-class healthcare providers in fitness, diet, nutrition plans, dental care, virtual doctor consultations, mental health care and yoga. Focusing on delivering a fast and reliable customer experience, the start-up has provided an app with 24×7 support for claims, queries, and other related issues.
The company aims to onboard about 3,000 clients by the end of this year, 50,000 in the next two years and 10 million by 2025.