Gravie Raises $28M in Series D Financing
Minneapolis-based Gravie Inc. just closed on a $28 million Series D financing round, the largest in the firm’s history. The financing round was led by AXA Venture Partners, the venture capital arm of Paris-based AXA, one of the globe’s largest health insurers.
What’s drawing investors?
“Over the past couple of years, the company has grown rapidly. We have almost quadrupled revenue over the past couple of years,” said Abir Sen, Gravie’s co-founder and executive chairman.
Sen said that Gravie, founded in 2013, has now raised $73 million in equity financing. The company is based in downtown Minneapolis and has just under 100 employees.
“When we started Gravie the idea was that employers…shouldn’t be in the business of making health care decisions,” recalled Sen.
Under that “defined contribution” model, Sen said, “you’re essentially outsourcing your entire health insurance [benefits program] to Gravie.” The company offered a marketplace where employees could tailor plans to meet their own personal needs.
But the company has since expanded beyond that original concept. In 2018 Gravie launched its own health care plan, now called Comfort.
“We’ve created a plan design that doesn’t exist anywhere else,” said Sen.
Comfort is billed as the first-ever “zero deductible, zero copay” health plan.
There’s no charge for the basics: primary care, preventative care, labs, generic drugs and even visits to urgent care. Employees only need to pay out of pocket for more serious health issues.
Comfort is now one of the options on Gravie’s marketplace of health plan options for companies.
Sen said, “35 to 40 percent of the employers are buying Comfort for their employees.”
He added, “We had almost 100% customer retention this past year.”
Sen said that new financing will help fuel continued company growth.
“The money helps us to continue to scale the company,” said Sen. “Expand into more markets, …and then continue to innovate on the product so we can maintain and improve the consumer experience.”