Product

With 7.4 million people waiting for care in the NHS, many people have turned to private healthcare. Employers increasingly see the value of providing such healthcare for their workers as it reduces long-term absences, increases retention, and improves general welfare.

However, the existing healthcare solutions are incredibly costly, hard to use, and provide little transparency over where the employer’s healthcare budget is being spent.

Wellco is a SaaS platform that enables enterprise customers to offer self-funded healthcare benefits that are fully customisable and easy-to-use.

Cost saving - Remove unnecessary middlemen and utilise a ring-fenced trust fund to insure the health risk, benefitting from tax efficiencies

Real-time analytics - Receive actionable insights into the underlying cost drivers and employee health trends

Centralised - Access a full suite of healthcare services all from one platform

Founder

Abel Lau, Founder & CEO - Previously PE investor at KKR and early product at Tema. BA - Engineering, University of Cambridge

Spotlight Analysis

Strengths

• Value add: employers benefit from a 40% increase in spend efficiency, by removing unnecessary brokers in the value chain

• Market positioning: incumbents will cannibalise their existing product if they launch a similar platform

• Demand: the top three private health insurers added 480,000 customers in 2022

Weaknesses

• Healthcare reform: an improvement in the NHS will lead to a significant headwind in the private healthcare market

• Partnerships: Wellco needs to establish a whole array of healthcare provider agreements, potentially navigating exclusive clauses

Market

YuLife - Raised £95m Series C from Dai-ichi Life Insurance Company Limited and others in July 2022

Peachy - Raised £1.5m seed round from several industry angels in September 2022

And existing large incumbents such as Aviva, AXA and Bupa.

Key Details

Year founded: 2023

Summary: Wellco is a SaaS platform that enables enterprise customers to offer self-funded healthcare benefits that are fully customisable and easy-to-use.

Raised to date: Bootstrapped

Business model: 10% admin fee of the annual healthcare budget

Currently raising: Yes, £1m

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