Carrum Healtha value-based healthcare company that allows self-funded employers to purchase specialty medical care, raised $45 million in Series C funding.
When we last checked in with Carrum Health in 2021, the company had raised $40 million. Founded in 2014, the company provides guidance and coordination in surgical and cancer treatments. Members pay a fee for an all-inclusive pricing model and a 30-day guarantee of care through Carrum’s Centers of Excellence network.
Sach Jain, CEO of Carrum Health, told TechCrunch that a published study from RAND Corp. demonstrated that by working closely with members, the company is able to reduce unnecessary procedures by as much as 30% and help employers save up to 45% per care period .
Following the 2021 investment, the company launched its oncology offering in partnership with leading cancer institutes, including Memorial Sloan Kettering Cancer Center and University of Chicago Medicine.
“We have begun to explore new areas where we can expand the value proposition of the solution,” said Jain. “Oncology is now the area where employers are spending the most, and given that we saw a huge surge in demand for the solution, we decided to add more fuel to the fire behind oncology and that prompted us to go even further. to raise a funding round so we can invest aggressively in our oncology solution.”
Over the past three years, Carrum Health’s compound annual revenue growth has been 90% to 100%, Jain said.
Carrum Health co-founders Sach Jain and Brent Nicholson. (Image credit: Carrum Health)
He also noted that 2022 was “an important year for us”, with the bookstore almost doubling. In addition, the company added six new partners, including CVS, Included Health, Accolade, Rightway, SWORD Health and Virgin Pulse.
“The pressure on employers to cut costs has increased significantly in 2023,” said Jain. “We’re seeing a significant increase in demand for the solution and we probably have another significant year ahead.”
In terms of its $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. In total, the company has raised $91 million.
Jain plans to divide the new funding into two buckets: One is “investing aggressively” in oncology to “become the de facto solution for employers.” The company is thinking about how not only to address the oncology span, but also how to support the employees going through an oncology episode. The second is the further expansion of the core range of surgery.
As part of the investment, Teresa Lee, CEO of OMERS Growth Equity, will join Carrum Health’s board of directors.
“We were actively looking for companies that could meet the need for specialist spending, because that’s obviously a big spend,” Lee said in an interview. “Carrum gives people transparency about what they pay, and ultimately cost savings. We had the opportunity to speak with some of Carrum’s customers and they were looking for a provider that could help them solve some of the challenges of understanding the actual bundle and finding the best care for their employees in what would be a very difficult time for those families.”
