Pune-based technology-driven health insurance startup Loop Health has raised $2.3 Mn in seed funding led by US-based early-stage venture capital firm Sierra Ventures along with participation from Y Combinator and Soma Capital.
Angel investors like former Google Ventures partner Daniel Burka, Twitch ex-CTO Kevin Lin, and former WeWork CTO Shiva Rajaraman among others also participated in the financing round.
The company plans to use the funds raised to expand its virtual primary care offering, build a sales team to grow the distribution of its health insurance plans and for geographical expansion.
The startup claims to have onboarded more than 100 companies in the past few months. Some of its customers include GE, Helpshift, Shoptimise, Weikfield, and MSwipe among others.
Founded in 2018 by Mayank Kale, Ryan Singh, Amrit Singh, and Shami Raj, Loop Health offers companies group health insurance plans from prominent insurers bundled with a virtual primary care experience through an in-house medical team.
“When health insurance grows quickly in any market, healthcare prices start to increase. However, when you bundle both into a single offering, the health insurance company is not going to inflate costs as the primary care provider. We’re trying to build a value-based care system. The goal is to show that we can keep people healthy, prevent claims, and then become an insurance company in the long run,” said cofounder Amrit Singh
Once a company is onboarded Loop Health offers each employee and their family a dedicated medical advisor, unlimited doctor consultations with in-house family medicine specialists along with hospitalisation and claims guidance to minimise their cost.
“We’re expanding our healthcare categories across different specialities like dermatology, and gynaecology among others. We’re also looking at growing very quickly out of Mumbai and Pune for the next year,” said Kale, who is also the chief executive of the Pune-based startup.
According to Inc42 Plus India’s Healthtech Landscape In A Post-Covid-19 World, the preventive healthcare market in India is expected to reach $170 Bn by 2025, primarily driven by fitness and wellness apps, and the diagnostics and therapeutics sub-segments.
Indian healthtech startups secured a total funding of $2.3 Bn between January 2014 and March 2020 spread across 459 deals.