The French insurance unicorn, Alan, recently inked a multi-pronouncement agreement with Belgium’s largest bank, Belfius, which involves a distribution alliance and a sizeable investment in the firm.
Alan’s €173 million Series F fundraising round, or around $193 million at current currency rates, is being led by Belfius. A few of Alan’s previous backers are taking part once more: Temasek, Coatue, Lakestar, Teachers’ Venture Growth, and OTPP.
If you’re not acquainted with Alan, the business began with a health insurance plan meant to supplement France’s state healthcare system. When an employee joins a French company, they are all required to get health insurance.
The user experience offered by Alan’s primary product is far superior to that of a traditional insurance provider because to extensive optimization. Alan has, for example, automated a large portion of the claim administration system. There are instances where you receive a reimbursement on your bank account minutes after leaving the physician’s office.
With time, the business expanded its offerings to include more health-related services like live chat with physicians, prescription eyeglass ordering, and access to preventive care materials on back pain, mental health, and other topics through a mobile app. The business has been using AI more lately to boost productivity.
Alan disclosed several performance indicators for the company earlier this year. The company said it could achieve profitability without seeking more capital as over 500,000 people were insured by Alan’s insurance products.
Although the bank will sell the startup’s health insurance products to its own corporate and institutional clients, which represent millions of employees, Alan said the cooperation with Belfius was a fantastic opportunity to broaden its customer base in Belgium.
“This privileged partnership with Belfius, whose transformation over the past decade has been truly inspiring, opens the door to a new era for Alan in Belgium. Belfius’ investment will allow us to accelerate our development and expand our capacity to offer cutting-edge, accessible health products and services to a wide audience,” co-founder and CEO of Alan, Jean-Charles Samuelian-Werve, said in a statement that Belfius’ investment.
Alan has recruited an additional 150,000 clients since February, including the French Prime Minister’s office. This year, it anticipates that its recurring revenue would total €450 million, or almost $500 million.
But Alan’s not your average software-as-a-service provider; the majority of its earnings are allocated to paying insurance claims. However, one thing is certain: the business is growing at an unstoppable rate.