Insurtech startup Plum raises Rs 7 crores in seed funding

Plum, a Bengaluru based group health insurance startup, has raised Rs 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.

Abhishek Poddar, co-founder and CEO, Plum said: “When we look at other countries like the US, we see that a high percentage of the population is covered under employer-provided health insurance. We believe that India too will move in that direction, where a significant portion of India's population will rely on employer-sponsored health insurance. With Plum, we want to enable every last company in India to provide a high-quality health cover to their employees, no matter how small or big they are. We want to be the de-facto platform for employee health insurance, initially in India, and later in other developing markets like SE Asia and Latam.”

The company plans to use the funding to scale business and engineering teams so as to solve some of the hardest engineering challenges in Insurtech and build innovative distribution channels. Within just 4 months of launch, Plum has managed to get over 100 companies as customers.

Plum provides employers and employees with customizable plans, transparent pricing, and high-quality healthcare experience, said a statement from the company. The platform understands the needs of a corporate and guides them on setting up their group health insurance in less than 60 minutes.

Plum additionally helps employees with improved health benefits including doctor consultations, health check-ups, fitness and 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.

Saurabh Arora, Co-founder and CTO of Plum, said: “At Plum, we are imagining group health insurance products from ground-up. We have built underwriting and fraud detection rails with insurance companies that never ever existed. This has enabled us to offer pricing that may be up to 80% cheaper than existing market pricing, to companies as small as 7 employees. At Plum, we are building a truly online insurance platform that covers frontend (distribution) and backend (pricing, carrier and compliances).”