Employee health benefits platform Plum Insurance has raised Rs 193 crore ($20.5 million) in its Series B round led by Peak XV Partners. Existing investor Tanglin Venture Partners increased its stake, while GMO VenturePartners joined as a new investor.
The company is raising a fresh round after nearly five years, following its $15.6 million Series A round led by Tiger Global in 2021.
It plans to use the fresh capital to invest in talent, technology, AI-led claims operations, and deeper integrations with HR and payroll systems, while expanding into preventive care, primary care, mental wellness, and telehealth.
Founded in 2019, Plum focuses on improving the claims experience, which remains a critical pain point in insurance. The company claims to have processed over 500,000 claims to date, with median cashless hospital discharge time reduced to 47 minutes from 180 minutes in 2019. As per the company, its reimbursement turnaround time has improved to 1.5 days from 25 days during the same period.
The platform also reports that 78% of claims are resolved without human intervention, compared to 34% in 2022. In cases where claims are denied, Plum contests decisions and has secured favourable payouts in 88% of disputed cases, recovering over Rs 10 crore in the past year.
Plum currently serves more than 6,000 organisations including CRED, Meesho, PhonePe, Swiggy, Tata CLiQ, Urban Company, WeWork, and Zomato. The fundraise follows Plum’s first full year of EBITDA and cash flow profitability, a key milestone as the company scales its offerings across insurance, healthcare, and employee wellbeing.