Loop Health Secures $12M Funding - Elevation Capital & General Catalyst

Loop Health Secures $12 Million Series A Funding to Expand Healthcare Access in India

Loop Health is positioning itself to become a leading healthcare provider in India, aiming to replicate the success of Oscar Health within the Indian market. The company is focused on addressing the significant gap in health insurance coverage across the country through a combined approach of primary care services and insurance offerings.

Recent Funding and Company Growth

The Pune-based startup recently completed a $12 million Series A funding round, co-led by Elevation Capital and General Catalyst. This investment was further supported by contributions from Khosla Ventures, YC Continuity Fund, Tribe Capital, and a diverse group of angel investors.

This latest funding brings Loop Health’s total funding to $14 million since its inception in 2018. A prior seed round of $2.3 million was secured previously. The company benefited from participation in Y Combinator’s Winter 2020 accelerator program.

Founding and Core Services

Loop Health was founded by Mayank Kale, alongside Ryan Singh, Amrit Singh, and Shami Raj. Prior to establishing Loop Health, Kale focused on developing digital patient health records throughout India.

The company provides comprehensive group health insurance plans, sourced from major insurers, to businesses of all sizes. These plans are integrated with a virtual primary care experience delivered by Loop Health’s dedicated medical team and network of healthcare professionals.

Addressing the Indian Healthcare Insurance Landscape

Currently, it’s estimated that less than 15% of the Indian population has health insurance. Furthermore, many existing plans primarily cover hospitalizations and medical procedures, lacking provisions for ongoing preventative care. Loop Health seeks to rectify this by emphasizing continuous care, reducing the necessity for hospital visits.

Kale notes a shift in employee expectations, stating that “half of potential customers are purchasing insurance for the first time.” He also highlights how the COVID-19 pandemic has elevated health insurance from a desirable benefit to a central employee expectation.

Customer Engagement and Plan Utilization

Traditional insurance policies often impose waiting periods of up to four years before covering certain conditions. However, Loop Health reports that 40% of its customers consult with a Loop doctor within the first three months of enrollment.

Over the last year, Loop Health has partnered with over 150 companies, representing a total of approximately 50,000 members. Notable clients include Shaadi.com, rediff.com, Helpshift, Knorr-Bremse, Shoptimize, Weikfield and Moonshine Meadery.

Future Goals and Expansion Plans

Loop Health has set ambitious goals, targeting coverage for 1 million members by the end of 2022 and expanding to 5 million members across Southeast Asia within the next five years.

The company has experienced substantial growth, with a 50% month-over-month increase in revenue and an expansion of its workforce from 10 to 80 employees across Pune, Mumbai, and Bengaluru. This includes a team of 15 dedicated care specialists.

The newly acquired capital will be allocated to member acquisition, the development of physical healthcare clinics, and expansion of its sales, engineering, and product development teams.

Kale emphasizes the company’s commitment to building trust, aiming to become a reliable healthcare provider through rapid response times, same-day consultations, personalized care plans, and comprehensive financial coverage.

Competitive Landscape

Loop Health is not alone in addressing the Indian health insurance market. Other startups, such as Even and Plum, are also innovating in this space. Additionally, established players like Policybazaar continue to evolve their insurance marketplace offerings.

Investor Perspective

Elevation Capital partner, Mayank Khanduja, views Loop Health as a fundamentally healthcare-focused company that also offers insurance solutions. He points out the complexities of navigating insurance and the common uncertainty among policyholders regarding hospital selection.

Khanduja estimates the Indian healthcare market to be valued at $3.5 billion, with an annual growth rate of 20% to 25%. He believes this presents a significant opportunity for Loop Health to rapidly expand, particularly given the increased demand for health insurance driven by the COVID-19 pandemic.

“Insurance in India is often treated as a commodity, something to be held in reserve,” Khanduja explained. “Loop Health is changing that by providing not only insurance but also a comprehensive suite of primary care interventions, aiming to proactively manage health and minimize the need for hospitalization.”