Exclusive: Sequoia’s Surge leads Rs 30 Cr round in Plum Insurance; valuation reaches Rs 140 Cr

Health insurance startup Plum Insurance has raised another round of funding after raising Rs 7 crore seed fund in July, this year. The Bengaluru-based startup that works with corporates, has raised a little over Rs 30 crore led by Sequoia’s Surge Ventures.

Plum Insurance will allot 33,865 seed preference shares and an equity share at an issue price of Rs 8,960.77 per share to raise Rs 30.2 crore from Surge Ventures, IF India Partnership, Tanglin Ventures, AngelList India along with some angel investors, shows regulatory filings.

Surge and Tanglin will pump in Rs 16.65 crore and Rs 11.8 crore respectively while the rest fund will come from the other investors mentioned above.

Launched in late 2019 by Abhishek Poddar and Saurabh Arora, Plum Insurance helps employees with improved health benefits including doctor consultations, health check-ups, fitness and yoga, mental wellness, nutrition, and dental care. The company has been working with many firms including  Twilio, StayAbod, Instawork, Posist, TapChief, Fyle and others.

As per Fintrackr’s estimates, Plum Insurance has been valued nearly Rs 140 crore in this transaction.

Following the investment, co-founders -- Poddar and Arora -- have diluted their stakes from 85.11% to 66.14%. Both hold 33.07% stake in the firm. Surge will emerge as the largest stakeholder among investors in the firm with 10.82% holding followed by IF India and Tanglin which now control 10.36% and 8.7% stake respectively.

According to Entrackr’s sources, Plum Insurance is going to be part of the fourth cohort of Sequoia’s accelerator program Surge. Last week, Surge along with Chiratae Ventures also invested in a stealth mode startup founded by former vice president at Mobile Premier League Rajat Gupta and former investment professional at Chiratae Ashwin Swaminathan. The startup working under its holding entity Alpha Digital Health Pvt Ltd raised Rs 23 crore and is going to be part of Surge 04.

Entrackr had exclusively reported Alpha Digital’s seed round.

Over the past year, group insurance among startups and small companies has been gaining grounds. Onsurity and Nova Benefit are Plum Insurance’s notable competitors. Onsurity had raised Rs 20 crore in seed capital from Nexus Ventures.