Arturo Sanchez and his colleagues have dedicated the last two years to creating Sofia, a telemedicine and insurance solution designed to enhance healthcare access for individuals throughout Mexico via their existing insurance coverage.

Sanchez, formerly with Index Ventures, is working alongside his co-founders – Sebastian Jimenez, a previous Google team member now serving as chief product officer, and Manuel Andere, an ex-Patreon employee and Sofia’s chief technology officer – to deliver affordable insurance options to middle-income consumers across Latin America, beginning in Mexico City.

Supporting this endeavor are several regional and global investors, including Kaszek Ventures, Ribbit Capital, and Index Ventures. Index Ventures’ lead investment of $19 million earlier this year represented the firm’s initial commitment to a Latin American venture, though the strength of the market suggests it won’t be their last.

Index Ventures has identified a strong starting point for expansion within Sofia. The company, which began as a telemedicine platform, has recently gained approval to function as an insurer, aligning with a long-term strategy to offer a comprehensive health platform to its users.

The company was established by three university friends who earned their degrees from the Instituto Tecnológico Autónomo de México (considered Mexico’s equivalent of MIT). They initially launched a telemedicine service focused on COVID-19 as the pandemic emerged in Mexico.

This initial service served as a stepping stone toward the company’s larger objectives. While the initial product attracted 10,000 users, the broader vision extends beyond that.

“We obtained an insurance license because our aim is to provide more comprehensive healthcare support. We’ve developed a telemedicine solution, which is a key element of our offering. Our objective is to function as a fully integrated provider, delivering primary care and managing more complex health conditions,” explained Sanchez.

The company currently has a network of 100 physicians in Mexico City and will initially serve the city, offering expertise in 70 different medical specialties.

Virtual consultations are included without extra charges, and in-person or specialist consultations are available at a 30% discount compared to typical out-of-pocket expenses, according to Sanchez.

Pricing is determined by age and gender, but customers can generally expect to pay approximately $500 annually, or between $40 and $50 monthly.

The company covers 70% of treatment costs, up to a maximum of $2,000 per year, with a total coverage limit of $75,000. “In Mexico, this level of coverage addresses over 98% of all medical illnesses or treatment needs,” Sanchez stated.

Insurance coverage is even less prevalent in Mexico than in the United States.

“90% of private healthcare expenses are paid directly out-of-pocket. We are addressing the issue faced by individuals who are already spending money on healthcare, but doing so in an unpredictable and uncertain manner,” Sanchez said. “By subscribing to our service, they gain access to high-quality healthcare, representing a substantial improvement over their current situation.”