US-based health insurance provider Oscar Health filed for an initial public offering on Friday that will follow almost $1.7bn of funding from investors including internet technology group Alphabet and insurer Ping An.
Oscar runs an online platform with approximately 530,000 registered users that offers health insurance through a scheme using technology to optimise care and reduce premiums. It has set an initial $100m target and is looking to float on the New York Stock Exchange.
The company increased revenue 61% year on year to $1.67bn in 2020, though its net loss rose from $261m to nearly $407m over the same period. It has raised $1.67bn since it was founded in 2012.
Investment banking firm, Goldman Sachs, Founders Fund, Horizon Ventures, Wellington Management, Formation 8, General Catalyst, Khosla Ventures and Thrive Capital supplied Oscar’s earlier funding before Alphabet unit CapitalG provided $32.5m in 2015 at a $1.75bn valuation.
Fidelity led a $400m round for the company in a 2016 round featuring CapitalG, Ping An, General Catalyst, Founders Fund, Lakestar, Khosla Ventures and Thrive Capital that valued it at $2.7bn.
Oscar added $165m two years later at a $3.2bn valuation, Founders Fund leading a round backed by CapitalG and fellow Alphabet unit Verily Life Sciences, investment and financial services group Fidelity, 8VC, General Catalyst, Khosla Ventures and Thrive Capital.
Alphabet invested a further $375m in the company at a valuation of about $3.75bn later the same year, and joined General Catalyst, Khosla Ventures, Lakestar, Thrive Capital, Baillie Gifford and Coatue Management in a $225m round in June 2020.
Tiger Global Management led Oscar’s last round in December, when it raised $140m from investors also including Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla Ventures, Lakestar and Reinvent.
Although the company has not disclosed details of their stake sizes, the IPO filing indicates Alphabet, Fidelity, Formation 8, Founders Fund, General Catalyst, Khosla Ventures and Thrive Capital own stakes sized at 5% or higher.
Goldman Sachs, Morgan Stanley and Allen & Company are lead managing bookrunners for the IPO while Wells Fargo Securities is managing bookrunner. BofA Securities and Credit Suisse are also bookrunners, Cowen and LionTree are co-managers and Ramirez and Siebert Williams Shank are junior co-managers.
