BestDoctor, an insurtech startup has closed its third round of funding for $4.5 Mn. The funding round was led by AddVenture, Target Global and L1V1. While AddVenture is located in Russia, Target Global is based in Berlin and L1V1 is based in London. However, BestDoctor plans to spend the funds on developing software and expanding the product segment. The company offers insurance to businesses and their employees.
The Team
BestDoctor Team (L-R: Mikhail Belyandinov, Philip Kuznetsov, Mark Sanevich)BestDoctor was founded by Mark Sanevich, Philip Kuznetsov and Mikhail Belyandinov in 2015. Mikhail Belyandinov is the COO and co-founder of the company. Before joining the insurtech startup, he was completing his MD from the University of Moscow. Philip Kuznetsov is the Chief Data Officer.
Business Model
BestDoctor sends medical report expenses and the balance of the insurance account to the companies. The personal medical data of the employees are private. BestDoctor receives a flat commission from the company based on the number of employees. BestDoctor also provides online doctor consultation to the employees, which saves the company around 15% of the cost. They offer discounts for the services that are not included in the programme to the employees. BestDoctor has 3 services to offer:
Classic VHI: Classic VHI covers the risks with a fixed cost of the policy.
Postpaid Health Insurance: Postpaid Health Insurance allows employees to pay only for the services that they have used.
Optimal LCA: Optimal LCA offers online service and medical services at a discounted price.
BestDoctor earned 2nd place amongst the medical startups in Europe in terms of the number of users and revenue. Net Promoter Score (NPS) of the company is 54% which is 5x greater than the market average. They focus mainly on offering transparency, affordability and quick service. BestDoctor aims to save 23% of the users’ expenses. They have partnered up with around 11,000 clinics in Russia.
The insurance market in Russia grew by 4% and reached $22 Bn in 2019. BestDoctor has received a good response from the users as 98% of the customers continue with their services. Since BestDoctor helps the companies to keep a track of their expenses, the companies can save their money. Thus, due to its unique and quick services, BestDoctor has the potential to grow and expand in the future.
Sources: Techcrunch
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