Plum Insurance has raised $20 million ( ₹193 crore) from existing investors Peak XV Partners and Tanglin Venture Partners, and a new investor, Japan-based GMO Venture Partners.
The funding round comes as Plum looks to scale its business and provide partial liquidity to early backer Incubate Fund Asia, co-founder and chief executive Abhishek Poddar told Mint.
The round valued the Bengaluru-based company at $125 million ( ₹1,181 crore), almost double its previous valuation of $66 million ( ₹625 crore) from 2021. It had raised $15 million in a Series A round led by Tiger Global with participation from Peak XV’s Surge, Tanglin Venture Partners, Incubate Fund, and Gemba Capital.
About 30% of the latest round comprised secondary transactions, enabling Incubate Fund Asia to pare its stake, said Poddar. Incubate Fund was an early backer in Plum’s ₹7 crore seed round in 2020.
Incubate Fund Asia is raising fresh capital, including an India-focused seed fund of about $60 million and another vehicle with Japan’s Sumitomo Mitsui Financial Group, Mint reported in November.
Business expansion
Founded in 2019, Plum provides employee health insurance and benefits to companies. The company serves over 6,000 organizations such as Swiggy, Zomato, CRED, Meesho, Urban Company, WeWork, and Atlassian, and is expected to close the current fiscal year with a revenue of about ₹120 crore.
“Companies may hire fewer people, but they are investing more in those employees,” he said. While hiring growth may moderate due to automation and AI, companies are increasing spending per employee, he added.
Poddar said the firm onboards about 2,000 companies annually.
It has also become profitable, with the current fiscal year expected to be both Ebitda- and cash flow-positive. Ebitda stands for earnings before interest, taxes, depreciation and amortization.
The company will deploy the fresh capital across distribution, technology, and healthcare, including expanding its sales and marketing efforts to accelerate customer acquisition. On the product side, Plum is investing in automation and technology to reduce claims settlement timelines. “We have brought claims down from months to days, and the goal is to bring that down further to hours or minutes,” Poddar said.
Plum is also expanding beyond insurance into healthcare services, which now contribute about 20% of its business. The company had earlier said it plans to invest ₹200 crore over five years to build out its healthcare offerings, including preventive care, teleconsultation, and mental health support.
Poddar also added that these newer segments are growing at a triple-digit pace.
The global B2B2C insurance market size was around $4.98 billion in 2024 and is projected to reach $13.75 billion by 2034, with a compound annual growth rate of roughly 9.8% between 2025 and 2034, according to a report by Zion Market Research.