Prosus leads €480m investment in French health tech start-up Alan

In short: Prosus is leading a €480 million investment round in Alan, a Paris-based health tech company.

What happened

Prosus, a European technology investment group, is leading a €480 million funding round in Alan. The deal values Alan at €5.5 billion, up from €4 billion two years ago.

Alan is best known for selling health insurance to companies and large organisations. Its customers include Volkswagen and the French government. The company also uses AI, meaning software that can learn from data and help automate tasks (like a smart assistant that handles routine work).

Alan’s app includes virtual doctor visits and an AI helper called Mo. Mo can help book appointments and guide people to the right type of care by asking questions first.

The round includes both new money for the company and a “secondary” share sale, meaning some existing shareholders are selling part of their stake. Existing investors including Teachers’ Venture Growth and Index Ventures are also participating.

Alan said it now has more than 1.1 million members. It is on track to exceed €1 billion in annual recurring revenue by the end of this year. Annual recurring revenue is a way to measure predictable yearly income from ongoing subscriptions or contracts.

Why it matters

Most of Europe’s biggest start-up funding rounds this year have gone to AI-focused companies. This deal stands out because Alan makes most of its money from health insurance, not from selling AI products. For regular people, it is a sign that investors still see growth in services like health cover and digital care tools, even as attention stays heavily on AI.

Source: Financial Times