Healthcare and insurance technology platform, Loop Health has raised $25 million in its Series B funding round co-led by General Catalyst and Elevation Capital (formerly Saif Partners), the company said in a statement Tuesday.
The round also saw participation from leading Silicon Valley investors, Vinod Khosla and Khosla Ventures, along with a new investor, Optum Ventures. The current round comes just six months after Loop Health raised $12 million in its Series A funding round, taking the total funds raised by Invoq Healthcare India Pvt Ltd, which runs Loop Health, to $40 million to date, the company said.
Founded in 2018 by Mayank Kale, Ryan Singh, Amrit Singh & Shami Raj, Loop Health provides group health insurance and benefits to more than 130,000 members across 300 companies across India.
The insurtech player that counts companies like NoBroker, InCred, Vaibhav Global & SKF India among its clients, has said it will use these fresh funds to drive sales growth, product development and strategic hiring in its efforts to scale their new health assurance delivery model.
The insurtech start-up recorded strong growth in FY22 and claimed that it is recently growing at a pace of 30% month-on-month. The company has seen a fivefold jump in revenue from the previous financial year, it claimed.
Loop Health claims that it is the only insurance broker in the country with an in-house medical team, which enables them to directly extend preventive care, helping members manage chronic conditions like diabetes, hypertension, chronic obstructive pulmonary disease, mental health issues, among others.
“We wanted it to be more preventive than reactive. We wanted to bring insurers and doctors on the same side for once, so that we create a health assurance model that is incentivised to keep people healthy,” said Mayank Kale, co-founder and chief executive officer, Loop Health.
Loop Health said that it is betting on the $10 billion health insurance market that is growing at a 25% CAGR (compound annual growth rate).
“Loop’s healthcare-first mission aligns deeply with our thesis that an outcome-focussed solution is needed to crack an age-old market that sells insurance as a commodity. Since we co-led the Series A (funding round), the team has demonstrated this in plenty, growing 3 times in three quarters,” said Mayank Khanduja at Elevation Capital.