Loop Raises a $25M Series B, Aims to Build a New Healthcare Model
Loop, an Indian healthcare and insurance startup has raised $25 Million in a Series B round co-led by General Catalyst and Elevation Capital, with significant participation from leading Silicon Valley investor – Vinod Khosla and Khosla Ventures, as well as a new investor, Optum Ventures. Existing investor Sierra Ventures also participated. This round comes just 6 months after Loop raised a $12M Series A round, bringing the total funds raised till date to $40 Million.
Loop has recorded tremendous growth in FY 2021-22, growing at a clip of 30% month-on-month. The company has seen a 5x revenue growth from the previous financial year. They now provide health insurance & benefits to 130K+ members at 300+ companies across India. Their corporate team has grown from 50 to 250 in this period.
Founded in 2018 by Mayank Kale, Ryan Singh, Amrit Singh, and Shami Raj, Loop aims to revolutionize the healthcare industry. Currently, the startup provides group health insurance plans from prominent insurers to companies, bundled with instant, unlimited primary care. Uniquely, they are the only insurance broker in the country with an in-house medical team.
Mayank Kale, Co-founder & CEO, Loop, said, “When we started Loop, it was to change how the healthcare system worked. We wanted it to be more preventive than reactive and bring insurers and doctors on the same side for once, so that we create a health assurance model that is incentivized to keep people healthy. Through our journey, we’ve also been able to bring back the concept of family doctors to India. This level of primary care helps people live a healthier life and catch diseases early.”
As of April 2020, there is a federal mandate in India for employer health insurance and 65% of health insurance policies are booked by employers. The $10B health insurance market is growing at a 25% CAGR. This largely unpenetrated segment is mainly bought by company Human Resource managers from traditional offline brokers.
Commenting on the funding, Vinod Khosla, Founder, Khosla Ventures, said, “Care delivery in India 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 healthcare-first mission aligns deeply with our thesis that an outcome-focused solution is needed to crack an age-old market that sells insurance as a commodity. Since we co-led the Series A, the team has demonstrated this in plenty, growing 3X in three quarters. The founders have built a stellar team across tech, product, and business that’s looking to solve the hardest challenges in insurtech and healthtech,” said Mayank Khanduja at Elevation Capital.