Tiger Global has led a new round of $15.7 million in enterprise-focused group insurance platform Plum Insurance. The 15-month-old startup has raised over $20 million to date.
Plum has approved the allotment of 37,970 Series A preference shares at an issue price of Rs 29,976.83 per share to raise Rs 113.82 crore or $15.7 million, regulatory filings show.
On April 3, Entrackr had exclusively reported about Tiger leading new financing round in the Bengaluru-based company.
New York-based hedge fund Tiger Global has spearheaded the Series A round with $10 million followed by Tanglin Ventures, Surge Venture and IF India who have invested $2 million, $1.6 million and $1.5 million respectively.
Plum was a part of the fourth cohort of Sequoia’s accelerator program Surge.
AngelList, Meyer Keith Ventures and angels including Kunal Shah, Maninder Gulati, Ashish Tulsian, Gaurav Munjal, Roman Saini, Hemesh Singh among others have pumped in the remaining amount.
According to Fintrackr’s estimates, Plum has reached a post-money valuation of Rs 630 crore or $87 million. This is a 4.5X jump in Plum’s valuation in a matter of six months.
Launched in early 2020 by Abhishek Poddar and Saurabh Arora, Plum provides group insurance facilities to startups and SMEs. The company also provides health benefits including doctor consultations, health check-ups, fitness and yoga, mental wellness, nutrition, and dental care.
Plum has been working with many early to growth-stage startups including Fampay, Groww, ClassPlus, Smallcase, Twilio, StayAbode, Instawork, Posist, TapChief and Fyle.
Recently, Unacademy founder Munjal had announced that the edtech company enabled term life insurance for around 4,000 educators on its platform.
Fintrackr has also decoded Plum’s current shareholding structure in which co-founders Poddar and Arora hold an equal stake of 26.45% in the startup. Their collective stake has been diluted from 66.2% to 52.9% in this transaction. Tiger Global has acquired an 11.68% stake in the company while existing investors Sequoia Surge, IF India and Tanglin, now hold 9.6%, 9.15% and 8.64% stake respectively.
Plum directly competes with the likes of Secure Now, Onsurity, PazCare and Nova Insurance that also focus on group insurance amongst SME and startups. The company aims to onboard about 3,000 clients by the end of this year, 50,000 in the next two years and 10 million by 2025.