Insurtech startup Plum has announced its first Employee Stock Ownership Plan (ESOP) buyback programme worth Rs 15 crore. The move will allow 199 eligible current and former employees to sell a portion of their vested stock options and receive cash in return.
Under the programme, employees can sell up to 25% of their vested ESOPs. Around 17 employees are expected to receive payouts of more than Rs 20 lakh each. Plum said that current employees will receive the full fair market value of their shares without paying any exercise costs or discounts.
Recent Funding Pushes Valuation Higher
The ESOP buyback comes soon after Plum raised Rs 193 crore in a Series B funding round led by Peak XV Partners. The fresh investment almost doubled the company’s valuation to around Rs 1,181 crore.
Existing investor Tanglin Venture Partners increased its investment, while GMO Venture Partners joined the company as a new investor. The funding round also gave early investor Incubate Fund Asia an opportunity to partially exit its stake. So far, Plum has raised more than $41 million from investors.
Company to Invest Rs 200 Crore in Healthcare Business
Plum is also expanding beyond insurance by launching a new healthcare division called Plum Health. The company plans to invest Rs 200 crore over the next three to four years to build services focused on preventive healthcare, primary care, telehealth and AI-based health tracking.
To lead this business, Plum has appointed Prayat Shah, founder of healthtech startup Wellthy Therapeutics. The company expects healthcare to contribute 40-45% of its revenue in the coming years.
Revenue Growth and Profitability Improve
Plum reported strong financial growth in FY24. Its operating revenue increased to Rs 41.3 crore from Rs 16.2 crore in FY23. During the same period, the company’s net loss fell by 54% to Rs 25.5 crore.
The startup has also achieved a major milestone by recording its first full year of EBITDA and cash-flow profitability. For FY25, Plum expects revenue to reach nearly Rs 70 crore.
Serving Thousands of Companies Across India
Founded in 2019 by Abhishek Poddar and Saurabh Arora, Plum offers group health, life and business insurance solutions to companies. It currently serves more than 6,000 businesses, including Zomato, Swiggy, CRED, PhonePe and WeWork, providing insurance coverage to over 600,000 employees.
The company has focused heavily on improving the claims process through technology and automation. With strong customer retention and growing profits, Plum is now looking to strengthen its position in both the insurtech and digital healthcare sectors.