Loop Health, a Pune-based health insurance startup, has raised $12 million in a Series A round co-led by Elevation Capital and General Catalyst.
This round saw participation from other investors including Vinod Khosla (through Khosla Ventures), YC Continuity Fund, and Tribe Capital, and also featured leading angels including Amit Kumar Agarwal (Founder and CEO, NoBroker), Ramakant Sharma (Founder and COO, Livspace), Vidit Aatrey and Sanjeev Barnwal (Co-founders, Meesho), Eren Bali (Co-founder and CEO, Carbon Health; Co-founder, Udemy), Zach Sims (Co-founder and CEO, Codeacademy), and Kate Ryder (Founder and CEO, Maven Clinic).
Established in 2018, by Mayank Kale, Ryan Singh, Amrit Singh, and Shami Raj, Loop Health’s offerings aim to revolutionize how health insurance policies work. Currently, the startup provides group health insurance plans from prominent insurers to companies, ranging from startups to big corporations, bundled with a virtual primary care experience through an in-house medical team and network of other service providers. Distinct from other insurance brokers, the startup ensures members get access to high-quality preventive health care as an add-on benefit—instead of them only using the policy/product later at the hospitalization, medical procedure or claims stage.
Before starting Loop Health, Mayank Kale built digital health records for half a million patients across India. Mayank Kale, Co-founder and CEO, Loop Health, said, “My experience of working with clinics in villages helped me see first-hand how patients are at a disadvantage because they lack medical knowledge. The healthcare system has the incentive to over prescribe medication and suggest unnecessary procedures. This is something we want to fundamentally change.
Mayank Khanduja, Partner, Elevation Capital, said, “Health insurance is at a very nascent stage in India with only 10 percent of the total population covered, excluding public sector schemes, leading to high out-of-pocket healthcare expenditure. Moreover, employer provided health insurance has been growing at 20-25 percent and it is likely to accelerate further post COVID.”
Hemant Taneja, Managing Partner, General Catalyst said, "General Catalyst’s 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 more accessible to all. Loop falls squarely in the Health Assurance space.”
Vinod Khosla, Founder, Khosla Ventures, added, “Loop is changing the cost equation by allowing payers and providers to work together. Through its unique product and affordable pricing, Loop Health has a significant competitive advantage."
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