Focus on long-term growth over short term profits: Plum CEO Abhishek Poddar

Bengaluru-based insurtech startup Plum is inching closer to profitability, but its key focus is on long-term growth, according to its founder, Abhishek Poddar.

The company, which provides health insurance and wellness benefits to businesses, reported operating revenue of Rs 41 crore for the year and expects to maintain a similar growth trajectory over the next three years, Poddar said.

The startup’s upward trajectory comes after it cut its losses in half in FY24, fuelled by a 150% surge in revenue.

Founded by Poddar and Saurabh Arora in 2019, Plum has built a technology-driven B2B platform that offers health insurance, telehealth consultations, and preventive care solutions to employers and their workforces. Poddar, who previously worked at Google and McKinsey, envisions Plum as a long-term player in India’s evolving employee benefits landscape.

“We have been contribution margin positive for almost a year now, and we have been EBITDA profitable for the last three months,” Poddar told YourStory in a recent interview. “We are looking to be EBITDA profitable on a full-year basis in the next financial year. But our focus remains on reinvesting in growth and building new products rather than prioritizing short-term profitability.”

Plum’s path to profitability hinges on scaling its volumes, which in turn helps optimize its technology investments. “If you’re running a Rs 1,000 crore book and implement efficiencies that reduce costs by 20%, you can reinvest Rs 200 crore in tech and see immediate returns,” Poddar explained. “If your revenue is just Rs 10 crore, that same investment takes decades to pay off.”

The company has already onboarded close to 5,000 businesses, making it one of the largest B2B healthcare platforms in India, with customers ranging from startups with as few as 10 employees to multinational corporations with over 10,000 employees. Some of its high-profile clients include Zomato, Swiggy, CRED, and global firms like Twilio and Atlassian.

A significant portion of its revenue comes from enterprises that go beyond basic health insurance to offer employees a wider range of benefits, including mental health support, primary care, and accident and life insurance coverage.

Plum plans to invest $6 million over the next two years as it expands into the personal insurance sector. It aims to cover 10 million individuals by 2030.

"Our vision goes beyond just selling policies; we want to improve health outcomes, reduce hospitalisations, and ultimately make health coverage work for everyone," Poddar added.

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Telehealth Dermatology and Mental Health

One of Plum’s fastest-growing offerings is its telehealth service, which gives employees access to over 100 doctors across 25 specialities. The company has built the platform in-house, rather than relying on third-party providers, to ensure high-quality medical consultations.

While general medicine consultations were expected to dominate, Poddar noted that Plum observed an unexpected surge in demand for dermatology and mental health services—areas often neglected in traditional healthcare settings.

“The first consultation is the hardest because people are used to self-medicating,” Poddar explained. “People assume they can manage minor issues themselves—popping a paracetamol for a fever or using over-the-counter creams for skin problems. But once they experience our telehealth platform, they return frequently. We see members averaging six to seven consultations per year.”

Plum’s data suggested that convenience is a major factor in the increased uptake of dermatology and mental health consultations. Employees often avoid in-person visits for conditions that seem non-urgent, such as persistent acne, rashes, or mild anxiety.

“In traditional settings, you might ignore a small skin condition until it worsens, simply because you don’t want to spend half a day visiting a doctor. The same applies to mental health—people often postpone seeking help until symptoms become severe,” Poddar said. “By making these services accessible at the click of a button, we’re breaking down barriers to early intervention.”

Mental health consultations have seen particularly strong engagement due to shifting attitudes around workplace well-being. “Employers are realizing that supporting mental health isn’t just a perk—it’s essential for productivity and retention,” Poddar noted. “We’ve seen companies actively encourage employees to use our telehealth platform for counseling and therapy, reducing the stigma around seeking help.”

Funding and Future Growth

While Plum has raised over $20 million in funding from investors like Tiger Global and Sequoia Capital India, Poddar emphasised it is open to raising funds but is not dependent on external capital for its operations. He added that the company’s growth strategy is built on self-sufficiency, with a focus on long-term impact rather than short-term fundraising milestones.

“The way we run Plum, we assume there is no external funding,” Poddar said. “Fundraising is just a tool to accelerate our mission, not a necessity for survival.”

While Plum does not urgently need capital, it remains open to strategic investors who align with its vision, Poddar added. “If we find a like-minded partner who believes in the long game, we might raise funds to accelerate our expansion into new segments and product lines,” he noted.