Plum Insurance Raises Rs 193 Crore in Series B Funding
Employee health benefits platform Plum Insurance has successfully raised Rs 193 crore ($20.5 million) during its Series B funding round, with Peak XV Partners taking the lead. Tanglin Venture Partners, an existing investor, has increased its stake, and GMO VenturePartners has come in as a new investor. This fresh funding round is significant for the company, as it marks nearly five years since its last raise, which was a $15.6 million Series A led by Tiger Global in 2021.
Investment Plans for Plum Insurance
Plum Insurance aims to utilise the newly acquired funds to enhance its talent pool, invest in advanced technology including AI-driven claims operations, and establish deeper integrations with HR and payroll systems. This investment will also support its expansion into preventive care, primary care, mental wellness, and telehealth services.
Plum’s Focus and Achievements
Founded in 2019, Plum Insurance is committed to transforming the claims experience, which has been a long-standing challenge within the insurance sector. The company boasts that it has processed over 500,000 claims, with the median cashless hospital discharge time significantly improving from 180 minutes in 2019 to just 47 minutes now. Furthermore, the reimbursement turnaround has remarkably reduced from 25 days to just 1.5 days over the same timeframe.
Efficiency and Automation in Claims Processing
The platform has improved its efficiency, reporting that 78% of claims are resolved without the need for human intervention, a substantial increase from 34% in 2022. In instances where claims are denied, Plum Insurance actively contests these decisions, achieving favourable outcomes in 88% of disputed cases, successfully recovering over Rs 10 crore in the past year.
Client Base and Market Presence
Plum Insurance currently caters to over 6,000 organisations, including notable companies such as CRED, Meesho, PhonePe, Swiggy, Tata CLiQ, Urban Company, WeWork, and Zomato. This latest funding comes on the heels of Plum’s first full year of EBITDA and cash flow profitability, a pivotal achievement as the company continues to scale its offerings across the realms of insurance, healthcare, and employee wellbeing.