Sequoia Capital India backed insurance startup Plum has raised $4.1 million in a bid to provide group health insurance to small and medium enterprises.
The recent round of funding for the start-up, which was launched in March this year, is led by Sequoia Capital India and Tanglin Venture Partners. Existing investors, including Incubate Fund, also participated in the funding round.
The insurer said that the amount raised would be used to expand in new markets, build distribution channels, hire talent and develop products.
Since launch, the company has seen rapid growth, securing $1 million worth of insurance premium. The platform has more than 200 companies on board.
The funding round is part of the fourth cohort of Sequoia Capital India’s Surge initiative where 17 start-ups collectively raised $45.35 million. The initiative provides seed capital allowing start-ups to scale up their operations.
Small businesses find the process of purchasing insurance tedious and costly as they are unable to negotiate group policy pricing with a small employee base. But health insurance has gained awareness following the pandemic.
“The group health insurance market in India is projected to grow to $13.4 billion by 2025 and we will see the rise of innovative insurance products. Plum hopes to provide 700 million people with employer-sponsored insurance,” said Abhishek Poddar, co-founder of Plum.