Carum Health, a value-based healthcare company that enables self-funded employers to purchase specialist medical care, raised $45 million in Series C funding.
When we last checked in with Carrom Health in 2021, the company had raised $40 million. Established in 2014, the company provides surgical and cancer treatment guidance and coordination. Members pay a fee through Carrom’s Centers of Excellence network to receive an all-inclusive pricing model and a 30-day warranty on care.
Sach Jain, CEO of Carrom Health, told TechCrunch that a study published by RAND Corp showed that by working closely with members, the company has been able to reduce unnecessary procedures by 30% and costs per episode of care to employers by 45%. Helps to save up to Rs. ,
Following the investment, in 2021, the company launched its oncology offering in partnership with top cancer institutions including Memorial Sloan Kettering Cancer Center and University of Chicago Medicine.
“We have started exploring new areas where we can expand the value proposition of the solution,” Jain said. “Oncology has now become the top spend area for employers, and given that we have seen a huge increase in demand for solutions, we decided to add more fuel to the fire behind oncology and this gives us another round of funding. We can aggressively invest behind our oncology solution.”
Jain said that in the last three years, Carrom Health’s compound annual growth rate in revenue has been 90% to 100%.
Sach Jain and Brent Nicholson, co-founders of Carrom Health. (Image credit: Carrom Health)
He also said that 2022 was “a big year for us” which would include nearly doubling its book of business. In addition, the company added six new partners including CVS, Include Health, Accolade, Rightway, Sword Health and Virgin Pulse.
Jain said, “The pressure on employers to cut costs has increased significantly in 2023.” “We are seeing a significant increase in demand for the solution and are likely to have another dominant year.”
In terms of the $45 million Series C, OMERS Growth Equity led the round and was joined by new investor Revelation Partners and existing investors Tiger Global Management, Wildcat Venture Partners, Cross Creek and Springrock Ventures. Overall, the company has raised $91 million.
Jain plans to deploy the new funding into two buckets: One is “aggressively investing” in oncology to “build a real solution for employers.” The company is thinking about how to not only address oncology spans, but how to support employees who are going through oncology episodes. The second is continuing to expand the size of its core surgery offering.
As part of the investment, Teresa Lee, Managing Director of OMERS Growth Equity, will join Carrom Health’s board of directors.
“We were actively looking for companies that meet the need for specialist spending because it certainly is a big part of the spending,” Lee said in an interview. “Carrom gives people transparency in terms of what they pay, and ultimately, a cost savings. We had the opportunity to speak to some of Carrom customers and they were looking for a provider who understands the real bundle and offers them The staff can help them address some of the challenges in terms of being able to find top-line care for those families who will have a very difficult time.
