Health insurance startup Alan reached 5 billion euros

30% of European unicorns may have lost its billionaire statusbut no Alan. The French health insurance startup is now valued at €5 billion — that’s about $5.83 billion 4.5 billion dollars In 2024.

It was created in 2016Alan has grown into a team of 740 people serving one million employees, freelancers and retirees with health insurance and health services. Its app already allows users to manage bills, see doctors and track health habits. CEO Jean-Charles Samuelian-Vervain, a co-founder and board member of the French AI company, said in a statement that the company now has the means to “invest aggressively, especially in (tech) and (AI).” Mistral AI.

Alan’s latest valuation comes from a €100 million ($116 million) round led by existing investor Index Ventures, with Greenoaks, Kaaf and SH joined by business angels including Shopify founder Toby Lütke and 2018 FIFA World Cup winner Antoine Griezmann. Belgian bank and insurance company Belfius, a strategic partner that led the previous Series F round, also participated.

In the interim, Alan won the contract to provide health insurance to up to 135,000 civil servants and their relatives, in addition to private sector contracts both in France and abroad. The company claims that it will grow 53% from the end of 2024 to 785 million euros in annual recurring revenue in 2025 – about $915 million.

Without sharing exact figures, Alan said it had achieved operating profitability in its country, where it was the first new independent insurance company to be licensed since the 1980s and remains its largest market. The company then expanded into Belgium and Spain, where it took on HP and Volkswagen as clients; and more recently, to Canada, where it is now licensed and commercially available in all provinces.

Overall, Alan says the operation is approaching break-even. after recording net losses $61 million in 2023 and $56 million in 2024it claims to have halved its losses as a percentage of revenue over the past 12 months. With international expansion and product improvement priorities, Alan aims to reach $1.16 billion in ARR over profitability by 2026. It looks like investors can live with this trade.