Insurtech startup Plum raises Rs 193 crore to scale AI-driven claims and employee benefits

Insurtech startup Plum has raised Rs 193 crore ($20.6 million) in a Series B funding round led by Peak XV Partners, as it looks to expand its healthcare and employee benefits platform.

Existing investor Tanglin Venture Partners and new backer GMO Venture Partners also participated in the round.

The Bengaluru-based startup said the funds would be used to hire talent, strengthen its technology infrastructure and build enterprise-grade security systems. It also plans to scale its AI-driven claims operations and deepen integrations with HR and payroll platforms.

Plum is seeking to broaden its offering beyond insurance claims, expanding into preventive and primary care, mental health services and telehealth.

“This round gives us the capital to move faster on what we know works, while expanding the platform across healthcare and employee benefits,” co-founder and CEO Abhishek Poddar said.

Founded in 2019 by Poddar and Saurabh Arora, the startup provides insurance and healthcare benefits to businesses, particularly startups and small and medium-sised enterprises.

It claims to serve more than 6,000 organisations, including firms such as Zomato, Swiggy, Atlassian and CRED, covering over 600,000 employees.

The fundraise follows what the startup describes as its first full year of EBITDA and cash flow profitability, marking a shift towards more sustainable growth in India’s insurtech sector.

Plum said it has processed more than 500,000 claims since launch, reducing median hospital discharge times to 47 minutes and reimbursement turnaround times to around 1.5 days.

GV Ravishankar, Managing Director, Peak XV, said: “Plum has reimagined employee health insurance by focusing on one of the moments that matters most to users: the claim. The team has built a fundamentally better product and customer experience, from onboarding and coverage design to claims resolution and preventive care. Today, Plum serves organisations ranging from fast-growing startups to large enterprises, and we believe its product depth and operational discipline position it to define the future of employee benefits in India.”