US health insurance marketplace Gravie scores $10.5M in first funding round
Health insurance marketplace Gravie announced that it has bagged $10.5 million in Series A funding. Aberdare Ventures was the lead investor and FirstMark Capital was a contributor in the said round, according to PR Newswire.
The capital infusion will allow Gravie to expand to 50 states in the US next year. Under the terms of the investment deal, Aberdare partner Dr. Mohit Kaushal will join the company's board, the report added.
TechCrunch cited Gravie co-founder and Chief Executive Officer (CEO) Abir Sen saying: "Once the provisions of the Affordable Care Act went into effect, employer sponsored group insurance will not make sense for many employers or their employees. At best, group coverage offers them no particular advantage over the individual market. In fact, in many parts of the country premiums in the individual market are actually lower than a similar employer-based group plan."
Gravie helps its clients understand their best long-term coverage option. Its services are offered for free to individuals and clients. The startup earns money through commissions from every sale that passes through its site, TechCrunch reported.