Health insurance company Oscar announced that it has closed a $225mn funding round. The round positions Oscar to continue growth off of a $2 billion revenue base and puts the company on a path to further advance its mission.
The latest fundraising round saw participation from many existing investors, including Alphabet, General Catalyst, Khosla Ventures, Lakestar and Thrive Capital, among others, with new investors Baillie Gifford and Coatue also joining the round.
The new funding enables the company to further accelerate the development of a unique model while creating efficiencies and cost-savings. The company claims that it is the first direct-to-consumer health insurance company.
“Transforming the health insurance experience requires the creation of personalized, affordable experiences at scale,” said Mario Schlosser, Co-Founder and CEO of Oscar. “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.”
Founded in 2012, Oscar is driving industry-leading levels of engagement – with mobile app downloads that are five times the average of top insurers. Oscar’s unique model results in high levels of member trust and satisfaction, with a member-reported NPS score of ~36, compared to the industry average of -12.*
Oscar was the first health insurance company to offer 24/7 telemedicine at $0. Over 30% of all Oscar members have used telemedicine, compared to just 10% of Americans.
Following an expansion in 2020, Oscar is now offered in 15 states and 29 U.S. markets, and has over 420,000 members across its individual, Medicare Advantage, and small group products.
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