OMERS Growth Equity leads Carrum Health’s $45 million Series C to expand cancer care
Carrum Healtha value-based healthcare company that enables self-financed employers to purchase specialist medical care, raised $45 million in Series C funding.
The last time we contacted Carrum Health in 2021, the company had raised $40 million. Founded in 2014, the company provides guidance and coordination of surgical and cancer care. Members pay a fee for an all-inclusive pricing model and a 30-day guarantee for treatment through the Carrum network of Centers of Excellence.
Carrum Health CEO Sach Jain told Zero2Billions that a study published by RAND Corp. demonstrated that by working with members, companies can reduce unnecessary procedures by 30% and help employers save up to 45% per treatment episode. .
Following an investment in 2021, the company is launching an oncology offering in partnership with leading cancer institutions, including the Memorial Sloan Kettering Cancer Center and University of Chicago Medicine.
“We are starting to explore new areas where we can extend the value proposition of the solution,” said Jain. “Oncology has now become a top spending area for employers, and given that we’re seeing a huge spike in demand for such solutions, we decided to put more fuel behind oncology and that fueled us to raise another financing round so we can invest aggressively behind our oncology solutions.”
Over the last three years, Carrum Health’s annual compounded revenue growth rate has been 90% to 100%, said Jain.
Carrum Health founders Sach Jain and Brent Nicholson. (Image credit: Carrum Health)
He also noted that 2022 “is a big year for us” which includes nearly doubling the books of his business. In addition, the company added six new partners, including CVS, Included Health, Accolade, Rightway, SWORD Health and Virgin Pulse.
“The pressure on employers to cut costs has increased significantly in 2023,” said Jain. “We’re seeing a significant spike in demand for the solution and we’re looking forward to having another big year.”
In the $45 million Series C case, OMERS Growth Equity led the round and was joined by new investor Revelation Partners and longtime investors Tiger Global Management, Wildcat Venture Partners, Cross Creek and SpringRock Ventures. In total, the company has raised $91 million.
Jain plans to spread the new funding into two groups: one is to “invest aggressively” in oncology to “become the de facto solution for employers.” Companies are thinking about how to not only address the oncology range, but how to support employees experiencing oncology episodes. The second continues to expand the size of its operating core offerings.
As part of the investment, Teresa Lee, managing director of OMERS Growth Equity, will join Carrum Health’s board of directors.
“We’ve been actively looking for companies that cater to specialist spending needs because, of course, the huge expenses,” Lee said in an interview. “Carrum gives people transparency in what they pay, and ultimately, cost savings. We had the opportunity to speak with some of Carrum’s customers and they were looking for a provider that could help them solve some of the challenges in terms of understanding the true bundle and being able to find the best treatment for them. employees in a very difficult time for the family.
