Oscar Health Insurance, a US-based insurance provider backed by conglomerate Alphabet, has secured $400m in a round led by financial services firm Fidelity Investments, Bloomberg reported today.
The round, which values Oscar at $2.7bn, also featured Alphabet’s Google Capital unit, insurance group Ping An, General Catalyst, Founders Fund, Lakestar, Khosla Ventures and Thrive Capital, according to Forbes.
Founded in 2012, Oscar sells health insurance to end-users rather than through employers. Customers can use a smartphone app to book appointments with doctors and keep a record of their visits, prescriptions and lab work.
The company has signed up approximately 145,000 users to date, up from 40,000 last year. Oscar aims to grow to a million users within five years and expects to expand into Los Angeles, Dallas and San Antonio in 2016.
Oscar had previously raised more than $350m in funding, securing $32.5m from Google Capital, the growth-equity unit of Alphabet (at the time internet company Google), in September 2015 at a $1.75bn valuation.
Investment bank Goldman Sachs, Founders Fund, Horizon Ventures and Wellington Management provided $145m in funding for Oscar in April 2015. The company’s other shareholders include Formation 8, Khosla Ventures, General Catalyst Partners, Thrive Capital and a range of angel investors.