Loop Health, a Pune-based health insurance distribution startup, has raised $12 million (around Rs 88 crore) in a series-A funding round led by Elevation Capital and General Catalyst. The funding round also saw participation from Vinod Khosla (through Khosla Ventures), YC Continuity Fund, and Tribe Capital.

Leading angels like Amit Kumar Agarwal of Nobroker, Vidit Aatrey and Sanjeev Barnwal of Meesho, Zach Sims of Codeacademy, Ramakant Sharma of Livspace, Eren Bali of Carbon Health and Udemy, and Kate Ryder of Maven Clinic also participated in the funding round.

The startup plans to utilise the funds to scale up business and product development through custom insurance products, including wellness and physical healthcare clinics. Additionally, the startup aims to use the funds to drive strategic hiring, mainly in the sales and engineering verticals.

Mayank Khanduja, a partner at Elevation Capital, said that with 10% penetration, health insurance is at a very nascent stage in the country, leading to high out-of-pocket healthcare expenditure.

Loop Health | Bringing Quality And Value Back Together In Healthcare

Started in 2018 by Mayank Kale, Amrit Singh, Ryan Singh, and Shami Raj, Loop Health currently sells only group health insurance plans. Loop Health is the first health insurance provider in India with an in-house medical team that helps you care for your employees. 

Speaking on the development, Vinod Khosla, Founder of Khosla Ventures, said that care delivery has many pain points with conflicting incentives. He added that Loop Health is changing the cost equation by allowing payers and providers to work together. Through its unique product and affordable pricing, Loop has a significant competitive advantage, Vinod Khosla added.

The Pune-based health insurance distribution startup has sold over 50,000 policies to 150 companies in the past 12 months. The list of its clients includes Shaadi.com, Helpshift, Knorr Bremse, Rediff.com, Shoptimize, and Weikfield, among others.

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