Plum raises Rs 193 cr led by Peak XV

Bengaluru: Employee health benefits platform Plum has raised Rs 193 crore led by Peak XV Partners, with participation from existing investor Tanglin Venture Partners and Japanese fintech investor GMO Venture Partners, as it looks to scale its insurance and healthcare platform.The fundraise—comprising about 70% primary capital and 30% secondary—comes after the company reported its first full year of EBITDA and cash flow profitability, marking a key inflection point in its growth journey.The fresh capital of around Rs 132 crore will be deployed across three areas: enhancing claims experience through deeper technology investments, expanding distribution to reach more firms, and building out a broader healthcare offering. Beyond insurance, Plum is expanding into preventive care, primary care, mental wellness, and telehealth, aiming to offer a more holistic health benefits platform and shift from reactive insurance coverage to proactive health management.“We are just at the tip of the iceberg in terms of the number of organisations and members we can serve,” said its cofounder and CEO Abhishek Poddar. “This round gives us the capital to move faster on what we know works.” When asked about valuation, Poddar said it has increased by around 90% compared to the previous funding round. Founded six years ago, Plum set out to address what it sees as the most broken part of insurance—the claims experience. The company has since processed over 500,000 claims, significantly improving turnaround times. Median reimbursement timelines have dropped to 1.5 days from 25 days in 2019, compared with an industry benchmark of around 12 days, while cashless hospital discharge times have improved to 47 minutes from 180 minutes.Automation has driven much of this efficiency, with 78% of claims now processed without human intervention, versus an industry norm of under 20%. The company also contests denied claims, with 88% of disputes resulting in payouts, recovering over Rs 10 crore for users in the past year.Plum currently serves more than 6,000 firms across India and onboards about 2,000 customers annually. It operates at an annualised premium run rate of around Rs 1,000 crore, with a churn rate of 7–8%.For FY2025–26, the company expects to close at around Rs 120 crore in revenue, reflecting a 75–80% year-on-year growth.