Loop Health, a Pune-based health insurance startup has raised $12 Mn in Series A round of funding co-led by Elevation Capital and General catalyst. The round also saw participation of Khosla Ventures, YC Continuity Fund and Tribe Capital.
Angel investors including Amit Kumar Agarwal of NoBroker, Ramakant Sharma of Livspace, Vidit Aatrey and Sanjeev Barnwal of Meesho, Eren Bali of Carbon Health and Udemy, Zach Sims of Codeacademy, and Kate Rider of Maven Clinic also participated in the funding round.
The startup will use the fresh infusion of funds to scale the business and focus on product development. They also plan on strategic hiring, particularly in the engineering and sales vertical.
Founded in 2018 by Mayank Kale, Ryan Singh, Amrit Singh, and Shami Raj, Loop Health has a different approach to health insurance than most providers. Currently, the startup differentiates itself by bundling group insurance plans from prominent insurers with a virtual primary care experience through an in-house medical team and a network of service providers.
In 2020, the startup bagged $2.3 Mn seed funding from Sierra Capital and others. According to a company statement, Loop Health has insured more than 50,000 users across 150 companies in the last twelve months. The startup team has also grown from 10 employees to 80 in the past one year. Recently, Amit Punchhi, former CIO and CBO at HDFC Life, also joined the company as President.
Mayank Kale, co-founder of Loop Health said “At Loop, we put doctors on the same side as the insurer”.
According to a report released earlier this year by S&P Global, the Asia-Pacific region has over 335 private insurtechs. The report further highlighted that China and India are collectively home to nearly half of the private insurtech companies in the APAC region, and according to figures compiled by the General Insurance Council and the Insurance Regulatory and Development Authority of India, the health insurance portfolio grew 11% year on year in FY21 to INR 58,584 Cr, due to the pandemic.
Other startups in the Indian health insurance space include Plum Insurance, Secure Now, Onsurity and Nova Insurance. In August, Onsurity had raised a $16 Mn Series A round from Quona Capital, Nexus Venture Partners and Whiteboard Capital. Other health insurance startups that recently grabbed funding include — Kenko Health (bagged $1.7 Mn) and Vital (bagged $3 Mn). The former of these two health insurance startups offers insurance on a predefined closed network at low premiums while the latter offers personalised coverage with a premium subscription format.