Insurance-focused employee wellness platform Nova Benefits is in talks to mop up a Series B round from existing and new investors, said two sources aware of the details of the potential financing round.
“Existing investors Bessemer Ventures and SIG are in talks to lead a $25-30 million fresh round in Nova,” said one of the sources requesting anonymity. “A couple of new investors could also join the round.”
This will be the second funding round for the Bengaluru-based firm in the past 8 months. It had raised $10 million in a Series A round led by Susquehanna International Group (SIG) and Bessemer in September 2021.
Last week, the Saransh Garg-led company also received an undisclosed amount from SHL Capital, a fund by Gumroad’s CEO Sahil Lavingia.
“The talks are in an advanced stage and Nova is likely to get a term sheet from these investors in a few weeks,” said the second source who also wished not to be identified as talks are yet to be public.
Founded in 2020, Nova helps enterprises improve employee wellness through health insurance, daily fitness and mental health counseling and wellness. For employees, it provides access to wellness benefits on a single platform and handholds them in increasing coverage of insurance.
Recently, the company claimed that over 300 companies are insured with Nova Benefits with more than 100,000 members covered, and 4,000 claims processed. Some of the companies that have insured with Nova include DTDC, Taco Bell, MyGate, PharmEasy, CoinDCX, Chumbak, HomeLane, TeachMint and Zenoti, among others.
According to sources, the company is likely to be valued in the range of $120-140 million (post-money).
Queries sent to Nova Benefits, Bessemer and SIG didn’t elicit any immediate response. We will update the story as and when they respond.
At present, the corporate health and wellness market in India is valued at about $7 billion and is expected to touch $18 billion by 2025. The growth of corporate insurance has increased multifold in a post-pandemic era.
Nova competes with Tiger Global-backed Plum, OnSurity and Kenko Health among others. Plum and Nova have been focusing on enterprises and startups whereas OnSurity’s major focus relies on small and medium enterprises (SMEs).