Oscar Health raised another $ 225 million in funding. The New York-based startup said it planned to use the funds to further grow and accelerate the development of its model.
The company currently has a $ 2 billion revenue base.
In April, Oscar made moves to trim costs, including cutting about 5% of its staff. CEO Mario Schlosser announced the news in a LinkedIn post, saying, “During times like this, the mission that drives Oscar becomes even more acutely important. All of us, members of Oscar and everyone else, are experiencing profound uncertainty around our health, and our economic circumstances.”
Oscar, which was founded in 2012 by Schlosser and Josh Kushner, touts its tech-forward approach to insurance. It currently operates in 129 markets across 15 states. It primarily offers individual and Medicare Advantage plans, though it recently struck a partnership with Cigna to offer more small group plans.
With the Cigna partnership, it expects to offer new plans in Atlanta, San Francisco and several cities in Tennessee later this year.
The new funding will bring Oscar’s total amount raised to $ 1.5 billion, according to Crunchbase. The raise included a mix of new investors, including technology hedge fund Coatue and Baillie Gifford, an asset management firm that has developed a reputation for investing in pre-IPO tech companies.
Previous investors General Catalyst, Khosla Ventures, Lakestar, Thrive Capital and Google’s parent company Alphabet also participated in most recent fundraise. In 2018, Alphabet led a $ 375 million funding round in the company, which it used to expand into offering Medicare Advantage plans.
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