French startup Alan raised a new round of funding of 183 million euros ($193 million at today’s exchange rate). The company sells its own health insurance products and has expanded into other health care products and services. In other words, Alan wants to create a health super app and one stop shop for all your questions and needs when it comes to your health.
“At the beginning of the year, we decided to raise funds again,” co-founder and CEO Jean-Charles Samuelan-Verve told me. “We have received several requests for investment. We saw that the markets could turn around and we didn’t know how long it would last. We are now self-sufficient and will remain so until we achieve profitability.”
Leading the round is Teachers’ Venture Growth (TVG), the venture capital fund of the Ontario Teachers’ Retirement Planning Council. This new round also includes existing investors such as Temasek, Index Ventures, Coatue, Ribbit Capital, Exor, Dragoneer and Lakestar.
Today’s round is the Series E round and is just one year after launch. raised 185 million euros in series D. While Alan essentially raised the same amount of money twice, the company’s valuation skyrocketed after the money was invested. Last year, the startup was valued at €1.4 billion. Currently, its valuation has reached 2.7 billion euros (that’s respectively 1.5 billion and 2.9 billion dollars at today’s exchange rate).
We sell insurance products at cost – more or less. And then we add our membership fee on top. This model works very well Jean-Charles Samuelian-Verves
Alan’s core business and biggest source of income has not changed. The company is a health insurance company built for the 21st century. With regulatory approval, Alan created his own underwriting engine.
The company can now register clients of all sizes and from all industries. Large companies can customize each setting to create the right insurance package for them.
As for people who are insured by Alan’s health insurance, the experience is better than with other insurance companies. Alan is trying to automate as many processes as possible so that the user experience is as convenient as possible.
For example, if you pay at the doctor’s office and it’s a simple bill, Alan will automatically process the bill and transfer the money to your bank account using an instant transfer. As a result, you are often reimbursed before you return home. The French National Health System will also reimburse its part automatically, but this usually takes a few days.
“We continue to implement our model, which is 100% based on the loss ratio formula. We sell insurance products at cost – more or less. And then we add our membership fee on top. This model works very well,” Samuelian-Verve said.
So far, the company has managed to attract 300,000 participants from 15,000 companies. Now Alan says that his annual income is 200 million euros.
Not just an insurance company
Alan’s founders made their vision clear right from the start. the very beginning. They don’t just want to build an insurance company. They want to create a medical startup that goes beyond insurance products.
Very quickly, users discovered that they could use the Alan app to find a healthcare provider near them using the Alan Map. The company also works with general practitioners to answer your questions via chat.
Not all of these side bets have worked. A year and a half ago Alan launched Alan Baby, the second app focused on your child’s health. He provided a combination of content, some community discussions, and an opportunity to start a discussion with a doctor. The company is set to close Alan Baby in the coming weeks.
“In 2022 and 2023, mental health will be a very important priority. That is why we have decided to close Alan Baby in order to reallocate resources,” Samuelian-Verve told me.
When it comes to mental wellness, Alan offers a consumer app in line with acquisition of Jour. There is also a B2B service called Alan Mind.
The company provides exercises and content. Employees can also contact an expert at any time. Some companies subscribe exclusively to Alan Mind. Others add the Alan Mind package to an existing Alan contract.
With Alan Clear, Alan now also offers a way to try on glasses using augmented reality. If you find a pair you like, you can buy it right through the app.
By the end of 2025, Alan wants to be profitable. This will require 3 million members, but the startup also plans to hire 1,000 people by then. The company currently operates in France, Belgium and Spain. There will be no new market in 2022, but Alan may launch a new country in 2023.
While Alan has ambitious goals, he currently has a tiny market share. “96% of the French population has health insurance. We still have less than 1% market share,” Samuelian-Verve said.
“We are at the very beginning of our history. This is the first step, but there is still more to come,” he added.
Credit: techcrunch.com /