Alan raises another $193 million for his one-stop-shop medical startup – MovieUpdates

French startup Alan has raised a new round of financing of €183 million ($193 million at the current exchange rate). The company sells its own health insurance and has expanded to include other medical products and services. In other words, Alan wants to build a healthcare super app and a one-stop shop for all your questions and needs when it comes to your health.

“We decided to raise again early this year,” co-founder and CEO Jean-Charles Samuelian-Werve told me. “We have received some investment requests. We saw that markets could turn and we didn’t know how long it would last. Now we are self-sufficient and we will remain so until we are profitable.”

Teachers’ Venture Growth (TVG), the venture capital fund of the Ontario Teachers’ Pension Plan Board, leads the round. Existing investors such as Temasek, Index Ventures, Coatue, Ribbit Capital, Exor, Dragoneer and Lakestar are also participating in this new round.

Today’s round is a Series E round and it comes just a year after the startup raised its €185 million Series D. Although Alan has essentially raised the same amount twice, the valuation after the company’s money has risen quite drastically. Last year, the startup was valued at 1.4 billion euros. It has now reached a valuation of €2.7 billion (that’s $1.5 billion and $2.9 billion respectively at the current exchange rate).

We sell insurance products at cost – more or less. And then we add our membership fee on top of that. This model works really well Jean Charles Samuelian Werve

Alan’s core business and main source of income has not changed. The company is a health insurance company built for the 21st century. After regulatory approval, Alan built his own underwriting engine.

The company can now sign up customers of all sizes and from all industries. Large companies can adjust every parameter to put together the right insurance package for them.

As for people covered by Alan’s health insurance, the experience is better than other insurance companies. Alan tries to automate as many processes as possible so that the user experience is as seamless as possible.

For example, if you pay at the doctor and it’s a simple bill, Alan will automatically process the bill and transfer the money to your bank account via direct transfer. The result is that you are often reimbursed before you return home. The French national health care system also automatically reimburses its share, but that usually takes a few days.

“We continue to roll out 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 of that. This model works really well,” says Samuelian-Werve.

And the company has managed to attract 300,000 members so far across 15,000 companies. Alan now says it generates an annual turnover of €200 million.

Image Credits: Alan

Not just any insurance company

Alan’s founders have been clear about their vision from the start. They don’t want to just set up an insurance company. They want to build a healthcare startup that goes beyond insurance products.

Soon, users discovered that they can use the Alan app to locate a health professional near them using Alan Map. The company also works with GPs so they can answer your questions from a chat interface.

Not all those side bets worked. A year and a half ago, Alan Alan Baby launched a second app focused on your baby’s health. It offered a mix of content, some community discussions, and the opportunity to start a discussion with a doctor. The company is going to close Alan Baby in the coming weeks.

“In 2022 and 2023, mental health will be a very high priority. So we decided to close Alan Baby so we could reallocate resources,” Samuelian-Werve told me.

When it comes to mental wellbeing, Alan offers a consumer app after the 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 their existing Alan contract.

With Alan Clear, Alan now also offers a way to fit glasses using augmented reality. If you find a pair you like, you can buy it directly through the app.

Alan aims to be profitable by the end of 2025. It will take 3 million members, but the startup also plans to hire 1,000 people by then. The company is currently active in France, Belgium and Spain. There won’t be a new market in 2022, but Alan could launch a new country in 2023.

Although Alan has ambitious goals, it currently has a small market share. “96% of the French population has health insurance. We still have less than 1% market share,” said Samuelian-Werve.

“We are at the beginning of our story. It’s a baby’s first step, but everything is still ahead of us,” he added.

Image Credits: Alan

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