Oscar, the US-based digital insurance provider backed by insurance group Ping An and internet and technology conglomerate Alphabet, completed a $140m funding round yesterday led by hedge fund manager Tiger Global Management.
Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla Ventures, Lakestar and Reinvent also contributed to the round, which increased the company’s overall funding to $1.67bn.
Founded in 2012, Oscar has built a mobile-focused health insurance service with more than 420,000 members, offering telemedicine consultations 24 hours a day and access to a personalised care team as well as integrating scheduling with its care provider partners.
The extra funding will support the company’s imminent expansion from 15 US states to 18. Mario Schlosser, its co-founder and chief executive, said: “Since 2017, Oscar has seen annualised membership growth of more than 70%.
“As we continue to rapidly scale our business, this capital will help us deliver on our commitment to bring accessible and affordable care to even more Oscar members across the country.”
Alphabet took part in Oscar’s last round, in June this year, when it closed $225m from investors also including General Catalyst, Khosla Ventures, Lakestar and Thrive Capital. Alphabet had previously paid $375m for a stake of about 10% in the company in August 2018.
Founders Fund led Oscar’s previous round, a $165m round in early 2018 also featuring Alphabet subsidiaries CapitalG and Verily Life Sciences, investment and financial services group Fidelity, 8VC, General Catalyst, Khosla Ventures and Thrive Capital, at a $3.2bn valuation.
Oscar had secured $400m in a 2016 round valuing it at $2.7bn. Fidelity led that round, which included CapitalG, Ping An, General Catalyst, Founders Fund, Lakestar, Khosla Ventures and Thrive Capital.
CapitalG’s first investment in Oscar was the year before, when it provided $32.5m at a $1.75bn valuation. The company ’s earlier funding came from Goldman Sachs, Founders Fund, Horizon Ventures, Wellington Management, Formation8, General Catalyst Partners, Khosla Ventures, Thrive Capital and various individuals.
