With $75 million in fresh capital, the Minneapolis-based company plans to expand its healthcare benefits plan
Minneapolis-based healthcare company Gravie plans to use $75 million in fresh investment capital to expand access to its US digital marketplace and double its workforce over the next 12 months.
Co-founder and co-CEO Abir Sen, who operates in about 30 states, said plans are to deepen the company’s market share in those states while attracting more members in states in the northeast and west of the country.
The regional expansion drives relationships with the company’s insurance brokers, who aim to bring Gravie’s flagship product to their customers, Sen said.
In addition to operating an online marketplace where employers select health plans, Gravie offers its own health benefits plan called Comfort, which launched in 2018.
Along with its marketplace and Comfort product, more than 525 employers across the country use Gravie, although Comfort is the main driver of the company’s growth, Sen said.
Abir didn’t disclose the company’s earnings, but said Gravie’s earnings have multiplied 11-fold over the past two years and he expects to double or triple earnings this year.
Since its inception in 2013, Gravie has raised approximately $148 million in venture capital investments.
Rather than growing through acquisitions, Sen and his leadership team are focused on organic growth, he said. Some of this organic growth is a direct result of the pandemic.
For some medium-sized businesses that don’t have their own benefit staff, health insurance selection is often put on “autopilot,” Sen said.
“Unless something is going really bad, they don’t really pay attention because they’re busy with other things,” he said. “What the pandemic has done has absolutely brought health care to the fore for both employers and employees.”
With the job market tight, Sen said Gravie is also getting more interest from employers who see quality healthcare plans as a way to retain and attract talent.
The most recent Series E round was led by Toronto-based Georgian and included follow-on capital from Eden Prairie-based Split Rock Partners.
One benefit of being one of Georgian’s portfolio companies is access to the Canadian company’s expertise in artificial intelligence and machine learning, Sen said. Healthcare technology is outdated, and Gravie now has an opportunity to leverage its platform with those capabilities build up, he said.
Georgian will also play an important role in sourcing tech talent, Sen said.
Gravie employs about 150 people, most of them in Minneapolis, and the company is looking for sales, marketing, software engineer, member services representative and offerings analyst positions, said Sen.