Bengaluru-based insurtech startup Plum Insurance has secured $20.5 million (approximately ₹193 crore) in a Series B funding round led by Peak XV Partners, marking a significant milestone in its growth journey. The round also saw participation from existing investor Tanglin Venture Partners and Japan-based GMO Venture Partners, highlighting continued investor confidence in the company’s technology-driven healthcare model.

Key Highlights

• Plum raises $20.5 million (₹193 crore) in Series B funding.
• Round led by Peak XV Partners, with Tanglin Venture Partners and GMO Venture Partners participating.
• Funds to be used for AI-led claims automation, hiring, and tech upgrades.

Founded in 2019 by Abhishek Poddar and Saurabh Arora, Plum operates an employee health benefits platform that combines insurance with healthcare services. The company currently serves over 6,000 organisations, including major startups and enterprises, and has processed more than 500,000 claims to date. Its focus on improving the claims experience—long considered a pain point in the insurance industry—has helped it stand out in a competitive insurtech landscape.

The fresh capital will be deployed to strengthen technology infrastructure, enhance AI-driven claims processing, and deepen integrations with HR and payroll systems. Plum also plans to expand its offerings across preventive care, primary healthcare, mental wellness, and telehealth, as it evolves from a pure insurance platform into a broader healthcare ecosystem.

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Operationally, the company has reported significant improvements in efficiency through technology. It has reduced median cashless hospital discharge time from 180 minutes to about 47 minutes and brought reimbursement turnaround time down to just 1.5 days from nearly 25 days earlier. Additionally, around 78% of claims are now processed without human intervention, underscoring the impact of automation and AI in streamlining insurance workflows.

The funding round comes after Plum achieved its first full year of EBITDA and cash-flow profitability, signaling a shift towards sustainable growth. As the insurtech sector continues to gain momentum, Plum’s latest fundraise reflects the increasing role of technology in reshaping employee healthcare and insurance delivery in India and beyond.