Carrum healthA value-based healthcare company that allows self-funded employers to purchase specialty medical care, has raised $45 million in Series C funding.
When we last signed up with Carrum Health in 2021, the company raised 40 million dollars. Founded in 2014, the company provides guidance and coordination of cancer surgery and treatment. Premium members receive an all-inclusive pricing model and 30-day care guarantee through the Carrum Center of Excellence network.
Carrum Health CEO Sach Jain told TechCrunch that a study published by RAND Corp. shows that by working closely with members, the company can reduce unnecessary procedures by up to 30% and help employers save up to 45% on each round of care.
Following the investment in 2021, the company launched its oncology service in partnership with leading cancer research institutions, including Memorial Sloan Kettering Cancer Center and the University of Chicago School of Medicine.
“We started to explore new areas where we could expand the solution’s value proposition,” says Jain. “Oncology has now become a top spending area for employers and as we saw a strong demand for this solution, we decided to add fuel to the oncology fire and that has helped. push us to raise another round of funding so we can actively invest in our cancer solution.”
Over the past three years, Carrum Health’s compound annual revenue growth rate has been 90% to 100%, Jain said.
He also noted that 2022 “is a big year for us” including nearly doubling revenue. In addition, the company added 6 new partners, including CVS, Inside Health, Accolade, Rightway, SWORD Health and Virgin Pulse.
“The pressure on employers to cut costs has increased significantly in 2023,” said Jain. “We are seeing a spike in demand for the solution and it is likely to have a significant year. Trong again. ”
In terms of a $45 million Series C, OMERS Development Equity led the round and featured new investor Revelation Partners and existing investors Tiger Global Management, Wildcat Venture Partners, Cross Creek and SpringRock Ventures. In total, the company raised $91 million.
Jain plans to roll out the new funding into two groups: one is to “invest heavily” in cancer to “become a real solution for employers”. The company is thinking about how not only to tackle cancer, but also how to support employees who are going through cancer. The second is to continue to expand the scope of core surgical service provision.
As part of the investment, Teresa Lee, chief executive officer of OMERS Development Equity, will join Carrum Health’s board of directors.
“We were actively looking for companies that address the need for expertise spending because that is of course a big spender,” Lee said in an interview. “Carrum provides people with transparency about what they are paying, and ultimately cost savings. We had the opportunity to speak with a number of Carrum customers and they were looking for a supplier that could help them with some of the challenges in terms of understanding the actual package and being able to find customer care. First for them. staff during a very difficult time for those families.