Alan, the French Insurance Unicorn, Strikes Major Deal with Belfius Bank in Belgium
In a groundbreaking move, Alan, the French insurance unicorn, has recently inked a game-changing deal with Belfius, one of the largest banks in Belgium. This partnership not only includes a distribution agreement but also a significant financial investment in the startup.
Belfius is taking the lead in Alan's Series F funding round, injecting a substantial €173 million (approximately $193 million). Joining the fray are some of Alan's existing investors, including OTPP via Teachers’ Venture Growth, Temasek, Coatue, and Lakestar.
For those unfamiliar with Alan, the company initially focused on a health insurance product that complements France's national healthcare system. As a mandate, French companies must provide health insurance to all employees upon joining.
Alan has revolutionized its core product to enhance user experience, streamlining processes like claim management. In some instances, users receive reimbursements in their bank accounts within minutes of leaving the doctor's office.
Moreover, Alan has expanded its offerings to include various health-related services, such as telemedicine consultations, prescription glasses ordering, and access to preventive care content on mental health and back pain through its mobile app. Recently, the company has incorporated AI to boost productivity.
Earlier this year, Alan disclosed impressive metrics, boasting over 500,000 individuals covered by its insurance products and the potential for profitability without additional funding rounds.
The partnership with Belfius presents a golden opportunity for Alan to broaden its customer base in Belgium. Belfius will introduce Alan's health insurance products to its corporate and institutional clients, representing millions of employees.
"This privileged partnership with Belfius...opens the door to a new era for Alan in Belgium...allow[ing] us to accelerate our development and expand our capacity to offer cutting-edge, accessible health products and services to a wide audience," remarked Alan's co-founder and CEO, Jean-Charles Samuelian-Werve.
Since February, Alan has secured an additional 150,000 customers, including from the Prime Minister's office in France. The company anticipates its annual recurring revenue to hit €450 million (about $500 million) by year-end.
While Alan differs from conventional software-as-a-service firms, with a significant portion of revenue allocated to insurance claims, one thing remains evident—the company's growth trajectory shows no signs of slowing down.
Analysis:
In essence, Alan's partnership with Belfius opens up new horizons for the French insurance unicorn to tap into the Belgian market. This collaboration not only provides a significant financial boost but also a strategic advantage in reaching a wider audience. With a focus on user experience, innovation, and expanding its service offerings, Alan is poised for continued growth and success in the insurance industry. For individuals, this means access to cutting-edge health products and services that prioritize convenience and efficiency, ultimately shaping a better insurance experience for all stakeholders.