- Insurtech startups are capitalizing on the trend of "embedded insurance," integrating insurance products seamlessly into third-party companies' customer journeys to enhance sales and retention.
- The CareVoice, a Shanghai-based embedded health company operating in 15 countries, secured $10 million in Series B funding led by Apis Insurtech Fund I, bringing its total funding to $20 million.
- Despite a slowdown in funding for U.S.-based digital health startups in 2023, The CareVoice maintained healthy cash flow and secured commitments for its Series B funding by mid-2022.
Insurtech has discovered a new trend recently: "embedded insurance." Startups in the insurance industry have found success by integrating insurance products into the customer journey of third-party companies to boost sales and retention.
For instance, instead of customers actively seeking coverage, insurance may now be offered as an add-on during their flight bookings.
One active player in this emerging sector is The CareVoice. Established in Shanghai 10 years ago, this embedded health company operates in 15 countries.
Recently, it secured $10 million in a Series B funding round led by the U.K.-based Apis Insurtech Fund I. This investment brings the total capital raised by the company to approximately $20 million.
In 2023, U.S.-based digital health startups raised $10.7 billion across 492 deals, the lowest since 2019. The CareVoice faced a funding slowdown but managed to maintain a healthy cash flow.
By mid-2022, the company secured funding commitments for its Series B. However, according to co-founder and CEO Sebastien Gaudin, when the market improved, one investor reduced the startup's revenue multiple.
Companies like The CareVoice, which offer embedded health solutions, may find themselves competing with traditional IT and consulting firms like Tata's TCS.
However, Sebastien Gaudin believes that health providers who choose to outsource their software needs will eventually realize the significant costs and time involved, with limited results.
Edited by Shruti Thapa
