Employee health benefits platform Plum Insurance has raised Rs 193 crore (approximately $20.5 million) in its Series B funding round, led by Peak XV Partners.
Existing investor Tanglin Venture Partners also increased its stake in the company, while GMO VenturePartners joined the round as a new investor.
This marks Plum’s first major fundraise in nearly five years, following its $15.6 million Series A round in 2021, which was led by Tiger Global.
Focus on Technology and Healthcare Expansion
The company plans to deploy the fresh capital towards strengthening its technology infrastructure, hiring talent, and enhancing AI-led claims operations. It will also focus on deeper integrations with HR and payroll systems.
In addition, Plum is expanding its offerings into preventive care, primary care, mental wellness, and telehealth, as it looks to build a more comprehensive employee healthcare ecosystem.
Improving the Claims Experience
Founded in 2019, Plum has been working to address one of the biggest challenges in insurance, the claims experience.
The company reports that it has processed over 500,000 claims so far. It has significantly improved efficiency, reducing median cashless hospital discharge time to 47 minutes, compared to 180 minutes in 2019. Its reimbursement turnaround time has also improved sharply to 1.5 days from 25 days during the same period.
According to the company, 78% of claims are now resolved without human intervention, up from 34% in 2022. In disputed cases, Plum actively contests claim denials and has achieved favourable outcomes in 88% of such cases, recovering over Rs 10 crore in the past year.
Growing Client Base and Profitability
Plum currently serves more than 6,000 organisations, including well-known companies such as CRED, Meesho, PhonePe, Swiggy, Tata CLiQ, Urban Company, WeWork, and Zomato.
The fundraise comes after the company achieved its first full year of EBITDA and cash flow profitability, marking a key milestone as it continues to scale its operations across insurance, healthcare, and employee wellbeing.
-By Shivani Solanki
