US-based digital health insurance provider Oscar completed a $225m round on Friday featuring internet and technology group Alphabet that took its total funding to $1.53bn.
Venture capital firms General Catalyst, Khosla Ventures, Lakestar and Thrive Capital also took part in the round, as did investment management firms Baillie Gifford and Coatue Management.
Oscar operates an online health insurance service with 420,000 members across 15 US states, offering plans tailored for individual, family and business. Users can also access telemedicine treatment free of charge and schedule medical appointments through the app.
Mario Schlosser, co-founder and chief executive of Oscar, said: “At Oscar, we combine our full-stack technology platform and data-driven approach to deliver seamless care that meets members where they are.
“We have created an experience that feels like you have a doctor in the family. This funding enables us to further accelerate the development of our unique model while creating efficiencies and cost-savings.”
Alphabet first invested in Oscar in 2015, providing $32.5m through CapitalG, the unit then known as Google Capital, at a $1.75bn valuation, following earlier funding from General Catalyst, Khosla Ventures, Thrive Capital, Goldman Sachs, Founders Fund, Horizon Ventures, Wellington Management and Formation8.
CapitalG, General Catalyst, Founders Fund, Lakestar, Khosla Ventures and Thrive Capital returned for a $400m series D round in 2016 that was led by investment and financial services group Fidelity and also backed by insurance firm Ping An, valuing the company at $2.7bn.
Oscar’s valuation grew to $3.2bn in a $165m round in March 2018 that was led by Founders Fund and which included CapitalG and fellow Alphabet subsidiary Verily in addition to Fidelity, 8VC, General Catalyst, Khosla Ventures and Thrive Capital. It raised $375m from Alphabet five months later.
