New Delhi, March 26 -- Bengaluru-based Plum Benefits Pvt. Ltd, an employee health benefits platform, has raised Rs 193 crore (around $20.5 million) in its Series B funding round led by existing venture capital investor Peak XV Partners.

Tanglin Venture Partners and GMO Venture Partners also participated in the round, Plum said Thursday.

With fresh capital, Plum plans to accelerate expansion and reach 10 million users through partnerships with employers. It also aims to invest in product development, particularly in automation and AI-led workflows.

Prior to this, in May 2021, the company raised Rs 113 crore in its Series A funding round led by Tiger Global, with participation from Peak XV, Tanglin Venture Partners, Incubate Fund and Gemba Capital.

Founded in 2019 by Abhishek Poddar and Saurabh Arora, the Bengaluru-based company was initially launched as an insurance-focused platform. It has since evolved into a broader health benefits provider. Its current offerings include telehealth services, OPD wallets, Plum Perks (discounts from over 100 health brands), and health camps targeting chronic conditions.

Plum said it has reduced claim filing time to under two minutes through its app, a move that has significantly increased claim activity, especially for smaller amounts. Nearly 20% of claims processed on the platform are below Rs 5,000, a segment traditionally underutilised due to cumbersome processes.

The company views this metric as a key indicator of system efficiency. Higher participation in low-value claims suggests reduced friction and improved accessibility, areas where legacy insurance models have struggled.

Healthcare services now contribute around 20% of Plum's total revenue.

The company also claimed that it reported its first year of cash flow profitability, supported by growth in gross written premium, net revenue retention, and overall revenue. It processes over 100,000 claims annually, with cashless claims resolved in minutes and reimbursements settled within days.

Plum is also positioning itself as an operational partner for HR teams, aiming to reduce administrative burden. Its long-term vision includes building a system that functions as a "co-pilot" for HR departments, handling claims, queries, and policy management with minimal manual intervention.

Published by HT Digital Content Services with permission from VC Circle.