Loop Health aims to be “India’s Health Oscar” and targets the country’s health insurance gap with its approach to primary care and insurance.
The Pune-based company is also the latest startup to raise funds in this area, providing $ 12 million in Series A funding in a round co-led by Elevation Capital and General Catalyst. Vinod Khosla, via Khosla Ventures, YC Continuity Fund, Tribe Capital and a group of angel investors including founder and CEO of NoBroker, Amit Kumar Agarwal, founder and COO of Livspace Ramakant Sharma, co-founders of Meesho Vidit Aatrey and Sanjeev Barnwal, joins the two companies. , Carbon Health Co-Founder and CEO Eren Bali, Codecademy Co-Founder and CEO Zach Sims, and Maven Clinic Founder and CEO Kate Ryder.
The new funding gives Loop Health total funding of $ 14 million since its inception in 2018, Mayank Kale, co-founder and CEO, told TechCrunch. This includes a previous fundraising of $ 2.3 million. The company was part of Y Combinator’s winter 2020 acceleration program.
Kale, who previously created digital health records for patients across India, created the company with Ryan Singh, Amrit Singh and Shami Raj to provide group health insurance plans from major insurers to businesses across sizes that include a virtual primary care experience through Loop Health’s in-house medical team and provider network.
It is estimated that less than 15% of people in India have health insurance, and among those who have it, most plans only work on hospitalizations and medical procedures, Kale said. Loop Health aims to change this by providing ongoing care so that a person does not have to go to the hospital unless necessary.
“When talking to potential customers, half of them are buying insurance for the first time,” Kale added. “Now employees are asking for it to make the company competitive against others with the advantage, but COVID has made it one of the main advantages for people. The sentiment has shifted now.
Older insurance plans typically don’t cover most illnesses for up to four years after purchasing it, but with Loop Health, 40% of Loop customers see a Loop doctor within the first three months of the plan, a Kale said.
Over the past 12 months, the company has started working with over 150 companies representing approximately 50,000 members in total, including Shaadi.com, rediff.com, Helpshift, Knorr-Bremse, Shoptimize, Weikfield and Moonshine Meadery. Loop Health aims to cover 1 million members by the end of 2022 and 5 million members in Southeast Asia over the next five years.
At the same time, the company’s turnover increased by 50% month over month, from 10 employees to around 80 employees in Pune, Mumbai and Bangalore. This includes 15 care specialists, Kale said.
To maintain the momentum, he intends to use the new funding round to onboard more members, build physical health care clinics, hire in sales, engineering, and product development.
“We will continue to grow rapidly and are on track to integrate a few hundred more businesses over the next 18 months,” Kale said. “We optimize trust. We want to be the trusted healthcare provider, and we will do so by providing a healthcare concierge who answers calls in 50 seconds, provides same day consultations, personalized chronic disease care plans and financial coverage. when patients need it. “
In addition to Loop Health, other startups are interested in health insurance in India. For example, this investment follows a funding round that Khosla Ventures transformed into an Even start-up. Meanwhile, Tiger Global led a $ 15.6 million Series A fundraiser in Plum, a startup that allows employers to provide insurance coverage to their employees, and Policybazaar has raised $ 75 million this time. year for its insurance market.
Mayank Khanduja, Partner at Elevation Capital, sees Loop Health primarily as a healthcare company that also provides insurance. Insurance is difficult to determine, and many policyholders don’t even know which hospital to go to, he said.
He estimates that the market is valued at $ 3.5 billion and is growing by 20-25% each year. It’s a pool deep enough that someone like Loop Health is attacking it and growing rapidly, especially with the surge from COVID-motivated employees.
“It was lacking in India,” Khanduja added. “Insurance is sold in India as a commodity – something to keep in the drawer and hope you don’t have to use it. This is what makes us passionate about Loop Health. They provide business insurance, but also a full range of primary care interventions, which will hopefully get you covered where you don’t need hospitalization.