Thatch, a digital health benefits platform, has raised $108 million in a new equity funding round at a $1 billion market valuation to help employers shift from traditional group health plans to a consumer-directed model.
Thatch said the funds will support accelerate commercial adoption of its digital health benefits platform across the U.S. To date, Thatch has onboarded more than 5,000 clients for its health benefits platform, signaling a growing corporate appetite for flexible alternatives to traditional group health plans.
The General Partnership, Index Ventures, General Catalyst, and Andreessen Horowitz co-led the investment round with participation from ADP Ventures, Paychex, Eli Lilly and Company, Scale Venture Partners, QuantumLight, SemperVirens, Quiet Capital, and Avid Ventures.
Thatch is Redefining Health Benefits
Thatch has built the digital infrastructure to make health benefits transition possible at scale, connecting employers and employees to individual coverage while integrating with major health insurance carriers, payroll providers, and benefits platforms. Its distribution network includes partnerships with ADP, Paychex, Gusto and QuickBooks, enabling employers to move to a consumer-directed model without rebuilding their existing benefits infrastructure.
“Every massive consumer market eventually gets rebuilt around the individual – Amazon did it for retail, Expedia for travel, Robinhood for investing. Thatch is doing it for healthcare,” said Jahanvi Sardana, Partner at Index Ventures.
“With AI, the end state is bigger than shopping: an agent that knows you, holds your wallet and can find, book and pay for the right care. The magic is that you stop navigating healthcare and start being taken care of,” added Jahanvi Sardana.
Thatch funding comes as digital health startups, including health benefits startups, have bagged $20+ billion in VC funding so far this year. More recently, Gravie, a health benefits company redefining how employers and their employees access and pay for healthcare, has raised a new funding round led by General Atlantic, bringing its total capital raised to $463 million.
In another deal, Healia (Healia Health), a healthcare benefits platform built for dual-income families, raised $18 million in funding to cut healthcare costs for families.