Tiger Global-backed Plum Insurance to sack 36 employees | The Financial Express

Tiger Global-backed Plum Insurance to sack 36 employees

Plum, that provides group health insurance to corporates said it has close to 2,000 clients, some of which include Swiggy, Meesho, Tata Cliq, OYO, Slice, Groww, Upstox and Unacademy.

Tiger Global-backed Plum Insurance to sack 36 employees
Plum, that provides group health insurance to corporates said it has close to 2,000 clients. (Representational image: PTI)

Tiger Global-backed Plum Insurance, an insurtech firm that provides comprehensive health and wellness benefits to corporates, is preparing to fire 36 employees.

Plum has about 360-400 staffers. ”…the world – economic and otherwise  – has changed drastically over the past six months and we do need to match the pace and quantum of our investments with the market’s realities. Doing right by our customers and our shareholders means embracing market conditions and building within the constraints of the new world we operate in, which has led us to take certain hard calls…of laying off 36 people (which is <10% of our team),” Abhishek Poddar, co-founder and chief executive officer (CEO), Plum told FE.  

Poddar added that all impacted employees would be eligible for severance pay, healthcare benefits, well-being counselling, employee stock ownership plan (ESOP) vesting and dedicated placement and career support. News website, Entrackr was first to report the development. 

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Plum, that provides group health insurance to corporates said it has close to 2,000 clients, some of which include Swiggy, Meesho, Tata Cliq, OYO, Slice, Groww, Upstox and Unacademy. In an interview with FE earlier, he said the company was also looking to diversify and sell individual policies soon.   

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That layoffs come at a time when Plum plans to increase its employee strength to 1,000 by the end of March 2023, up from around 400 that it currently claims to have. Over the past year or so, its workforce has increase from about 100 staffers, Poddar had said. Plum has so far raised about $21 millionfrom Tiger Global, Tanglin Venture Partners and is also a part of Sequoia’s Surge programme. Plum was last valued at about $82 million, when it raised $15.7 million in May 2021, according to Tracxn.

“We are building Plum for the long haul by accelerating our path towards being a self-sustaining business. A business that depends less on external capital and that aims at creating value for every stakeholder,” Poddar added.

Plum is the second insurtech startup that has laid off its employees. Nova Benefits, a direct competitor of Plum, was the first in the space that reportedly cut 70 jobs in June. Startups have been looking to reduce their cash burn as capital becomes costlier to access, thanks to soaring inflation that has pushed interest rates higher across the board.

So far in 2022, new-age companies have axed close to 16,000 jobs, with predictions that the number would increase further by end of this year. While companies across sectors have cut jobs, edtech firms have been particularly hit as demand for online education wanes. Edtech startups like BYJU’S, Vedantu and Unacademy have already slashed 6,500 jobs. 

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First published on: 09-11-2022 at 13:39 IST