[Funding alert] Insurance startup Loop Health raises $12M from Elevation, General Catalyst, others
Health insurance distribution startuphas raised $12 million (around Rs 88 crore) in a funding round led by Elevation Capital and General Catalyst.
The series-A funding round also saw participation from Vinod Khosla (through Khosla Ventures), YC Continuity Fund, and Tribe Capital.
Leading angels like 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 Ryder of Maven Clinic also participated, the Pune-based company said in a statement.
Loop Health has sold over 50,000 policies to 150 companies in the past 12 months and has been clipping at 50 percent month-on-month.
It has also ramped up its team form just 10 to over 80 employees and is operational in Pune, Mumbai, and Bengaluru. The biggest hiring is of Amit Punchhi, who was CBO and CIO at HDFC Life as the president.
The startup said it will use the funding to scale up business and for product development through custom insurance products including wellness and physical healthcare clinics, and drive strategic hiring, mainly in the sales and engineering verticals, said Mayank Kale, Co-founder and CEO, Loop Health.
Loop was established in 2018 by Mayank Kale, Ryan Singh, Amrit Singh, and Shami Raj and currently it sells only group health insurance plans.
Commenting on the funding, Mayank Khanduja, a partner at Elevation Capital, said, "With 10 percent penetration, health insurance is at a very nascent stage in the country, leading to high out-of-pocket healthcare expenditure."
Hemant Taneja, a managing partner at General Catalyst said its healthcare investment strategy is focused on health assurance, moving from a system of 'sick care' into a health assurance system designed to help people stay well, bend the cost curve, and make quality care more affordable and accessible to all and Loop falls precisely does this.
Vinod Khosla, Founder of Khosla Ventures, said, care delivery has many pain-points with conflicting incentives. Loop is changing the cost equation by allowing payers and providers to work together. Through its unique product and affordable pricing, Loop has a significant competitive advantage.
Loop's client list of 150 companies include Shaadi.com, Rediff.com, Helpshift, Knorr Bremse, Shoptimize, Weikfield, and Moonshine Meadery, among others.