French health insurance startup Alan is raising €480 million in a round led by Prosus, valuing the company at €5.5 billion, reports the FT. That makes it Europe’s biggest non-AI startup financing so far this year.
But while it may not be an AI company, its use of AI is giving it an AI-style valuation.
Alan has 1.1 million members, is profitable in France only, and expects to surpass €1 billion ARR by the end of 2026. First-quarter ARR reached €800 million, up 53% year-on-year. The raise is to fund international expansion outside France.
Three months ago, Alan raised another €100 million. The 10-year-old company sells digital health insurance to corporate customers. It now has a largely recurring revenue base, with most members on collective contracts.
While AI powers much of its platform (much of it provided via a deal with Mistral), most of its revenue still comes from insurance premiums. So one could easily conclude that Prosus is investing because of the regulatory complexity of healthcare, especially in Europe.
However, Alan has previously reported that it has embedded automation into claims processing, fraud detection and customer service, helping cut per-member administrative costs by 28% in 2023 alone.
In other words, while Alan may not be an AI company, the efficiencies gained via AI are giving it an AI company valuation.
Existing backers, including Index Ventures and Teachers’ Venture Growth, also participated in this round.
