Health insurance distribution startup Loop Health is in late stage talks to mop up a fresh round from existing investors, according to three people aware of the details of the transaction. Six months ago, the Pune-based startup had raised $12 million in Series A funding co-led by Elevation Capital and General Catalyst.
“GC and Elevation are likely to co-lead a new round worth about $25 million in Loop Health,” said one of the persons cited above on the condition of anonymity. “Some of the existing backers including Khosla Ventures will also participate in this round.”
Loop Health provides group health insurance plans from prominent insurers to companies, ranging from startups to corporates. As per the company, it offers free virtual primary care to any company that buys health insurance through its platform via an in-house medical team and a network of other service providers.
“The term sheet has been signed and if nothing goes wrong from here, the deal will be done in a couple of weeks,” said the second person requesting anonymity. According to this person, Loop is set to be valued in the range of $120-150 million.
Responding to Entrackr‘s queries, Loop’s co-founder Amrit Singh said that the numbers are off. Elevation Capital declined to comment on the story. Queries sent to GC and Khosla did not elicit an immediate response. We’ll update the story as and when they respond.
Founded by Singh, Mayank Kale, Ryan Singh, and Shami Raj, Loop claims to have more than 200 companies that represent about 80,000 total members. The company aspires to cover one million members by the end of 2022 and five million members across the Southeast Asian region over the next five years.
The Y Combinator-backed startup has raised close to $15 million since its inception in 2018. Apart from these institutional investors, Loop is also backed by angels including Amit Kumar Agarwal of Nobroker, Ramakant Sharma of Livspace, Vidit Aatrey and Sanjeev Barnwal of Meesho.
In the group insurance segment, Loop Health’s products compete with the likes of Tiger Global-backed Plum, Secure Now, Onsurity, PazCare and Nova Insurance.
