Oscar Health raises $32.5M from Google Capital

Oscar Health

Oscar Health, the startup trying to revolutionize the insurance industry, has managed to attract Google’s attention with its VC arm, Google Capital, investing $32.5 million into the company. As a result of this latest round of financing, Oscar now has an impressive valuation of $1.75 billion, according to The Wall Street Journal.

Launched in 2013, Oscar currently serves more than 40,000 customers in New Jersey and New York, with plans to expand its coverage to California and Texas next year. The company is looking to sign up users through online exchanges rather than employers where the average customer pays $5,000 per year. Also, Oscar is offering some perks to its customers to help them stay off the hospital; these would include wearable devices and a companion health tracking service, using which users can track their health and pro-actively (rather than reactively) act upon the information collected.

Oscar raised its previous round in April of this year, when it managed to secure $145 million from a number of investors, including Peter Thiel and Brian Singerman from Founders Fund, Horizon Ventures, Wellington Management Company and Goldman Sachs.

In 2014, the company reported $27.5 million in losses on revenues of $56.9 million.