French insurtech unicorn Alan made €505m in annual recurring revenues (ARR) in 2024 — a 48% growth compared to the previous year, when it achieved €340m in ARR.
Founded in 2016, Alan offers health insurance services for businesses and their employees that are fully app-based, which come with features like an AI-powered medical assistant and resources to improve physical and mental health.
Announcing its results on Wednesday, the scaleup beat its own expectations, having previously predicted revenues would grow closer to 40% in 2024.
The number of people Alan covers has also risen from 500k to 700k, representing employees across 32k businesses and 20k self-employed individuals.
Alan serves companies in France, Belgium and Spain, in sectors ranging from hospitality and retail to tech and the public sector. Last year, it inked deals with the French ministry of ecology and with the prime minister’s office.
Despite the company’s growth, Alan’s employee base only grew 8% in 2024 and losses reduced to €54m — compared to €59m in 2023.
This was largely down to the deployment of AI across most operations to improve productivity, according to cofounder Jean-Charles Samuelian-Werve. “There is not a single part of the company that isn’t affected,” he said. “It’s everywhere.”
The technology is used to automate customer service, improve fraud detection and produce designs, prototypes and code.
Samuelian-Werve anticipates that in 2025 Alan will grow its revenue by another 40% to reach €700m in ARR. The scaleup plans to reach 1m members in the next 18 months, partly thanks to its launch in Canada, and to be profitable in 2026.
Alan’s €4bn valuation
Alan was valued €4bn when it last raised a €173m Series F in 2024, led by Belgian bank and insurer Belfius. The fundraise came with a distribution partnership that has seen Alan deploy its services to Belfius’s employees, as well as its corporate and institutional clients.
The scaleup’s valuation puts it on par with US insurtech Oscar Health, which offers similar services. Oscar Health has a market cap of $4bn (€3.84bn) and recently announced that it expected up to $9.3bn (€8.9bn) in revenues for 2024.
Although there are critical differences between the US and the French market, Matteo Carbone, founder of insurtech think tank IoT Insurance Observatory, says that Alan’s valuation is “irrealistic”.
“A company with about half a billion premiums and that is not even profitable cannot be valued at €4bn,” he tells Sifted.
“However, this valuation was from a round where the lead investor also distributes Alan business in Belgium. This is a value they could reach in the future if they succeed in distributing the volumes they have in their forecast, while maintaining a decent level of technical profitability.”
Adrien Choquet, partner at investment bank Banque Hottinguer, tells Sifted that Alan’s tech offering and recent growth justify the company’s valuation.
“The challenge will be to maintain that tech offering at the forefront over the next few years,” says Choquet. “If you forget the tech and consider Alan as a traditional insurer, the valuation becomes decorrelated.”
Samuelian-Werve said: “Alan is one of the only players in Europe that has reached a critical size. Few companies maintain such growth with €500m in revenues. And even with this size, we haven’t even reached a 1% market share on the markets where we operate.”
“The valuation is determined by the market and by those who want to invest in us.”
Read the orginal article: https://sifted.eu/articles/alan-2024-revenues-news/
