Online health insurance platform Oscar Health has closed a $165m funding round to accelerate its expansion.
Founders Fund and Brian Singerman led the investment, with participation from firms including 8VC, Verily Life Sciences, Fidelity, General Catalyst, Capital G, Khosla Ventures, and Thrive Capital, among others.
US-based Oscar Health provides individuals, families, businesses and brokers with an online insurance platform. The company implements real-time analytics to help customers get the best healthcare products.
Through the app, users can search between a range of different coverage plans which suit different consumer needs and price ranges. All plans offer a concierge team to support health queries, step-tracking rewards, appointment booking, free annual physicals and health benefits like flu shots and various vaccinations.
Equity from the round will be used to accelerate its expansion plans and further invest in to its technology.
In a blog post, from Oscar Health co-founders Mario Schlosser and Joshua Kushner it said, “Bolstered by new partnerships with industry leaders, such as Cleveland Clinic, Humana, and AXA, Oscar now has a proven, replicable growth playbook: secure competitive prices with new health systems, acquire and engage membership in significant volumes, build market share for our provider partners, and begin to drive health care costs down. Expand at a rate of 4-5 cities every year, in individual, small group, and other market segments.”
Earlier in the week, Root Insurance collected a $51m Series C round led by Redpoint Ventures to support the expansion of its services across more US states. The auto insurance app uses a rating algorithm to help give consumers more personalised and accurate quotes.
Funding in the InsurTech sector saw a big increase compared to 2016, with $400m more equity deployed, according to data by FinTech Global. While the funding levels were higher in 2015, this was largely due to a colossal investment to China-based Zhong An, which netted around $931m.