Plum, an insurtech business based in Bengaluru, has allegedly committed INR 200 Cr ($23.3 Mn) for the next three to four years in order to develop into full-stack digital health services. The Tiger Global-backed business is launching Plum Health to provide working professionals throughout India with AI-powered health tracking, teleconsultations, and diagnostic services.
The money will be used to hire clinical and engineering personnel, build IT infrastructure, scale collaborations, and launch go-to-market campaigns, according to a media report that quoted Plum’s cofounder and CEO, Abhishek Poddar.
This investment will be heavily focused on technology. He went on to say that the financing will support the startup’s expansion strategy. Cash reserves and earnings from Plum’s main insurance operation will be used to fund it.
Prayat Shah to Lead the Healthcare Vertical
Prayat Shah, the founder of the healthtech startup Wellthy Therapeutics, is also joining Plum to head the healthcare division. Shah worked as a consultant for firms like KPMG and PwC Consulting before joining Wellthy Therapeutics about ten years ago.
Plum is a B2B insurtech platform that works with startups and SMEs to offer insurance, healthcare, and well-being benefits to staff members. It was founded in 2019 by Poddar and Saurabh Arora. The Bengaluru-based business has developed algorithms for fraud detection and underwriting that let businesses take advantage of group insurance.
Plum collaborates with companies including Zomato, Swiggy, SmallCase, WeWork, and others, according to the company’s website. According to Plum, it serves over 500K people and has over 4,000 customers overall.
In total, Plum has raised $20.6 million since its founding. Among them are Sequoia Capital, Tracxn Labs, Incubate India, Tanglin Venture Partners, Incubate Fund, and Gemba Capital. It faces competition from companies like Onsurity, Nova Benefits, and Pazcare.
Healthcare Sector Became a Lucrative Platform for Indian Startups
The move coincides with a flurry of activity as several new businesses are putting their money on the expanding healthcare industry. For example, less than a month ago, Amazon India introduced Amazon Diagnostics, an at-home healthcare service.
Additionally, the board approved PB Fintech, a prominent insurtech company, to merge PB Healthcare, its healthcare division. In May of this year, the vertical raised $218 million in its initial round of funding, which was headed by General Catalyst.
To support their expansion aspirations, investors are swarming into the healthtech sector. According to recent data from a media house, the healthtech industry closed 29 agreements totalling $377 million in the first half of this year. While Dozee raised INR 71.5 Cr in a combination of financing and equity earlier in March, CureBay raised $21 million in May.
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