The French scale-up Alan would have raised 480 million euros from the investment fund Prosus, as part of an operation which would value the company at 5.5 billion euros. Just three months after financing of 100 million euros, this new round of funding would constitute one of the largest fundraisings carried out in Europe this year outside of generative artificial intelligence and would increase the funds raised by the scale up to more than 1.2 billion.
At first glance, the operation may be surprising, Alan claims more than 1.1 million members, a growth rate of more than 50%, almost 800 million euros in annualized recurring revenue in the first quarter and a goal of exceeding one billion euros in ARR by the end of the year. The company also says it has achieved profitability in its French business, and there is nothing to suggest a company facing cash flow stress comparable to that experienced by many European scale-ups.
A new lifting which comes at a particular time
The operation brings Prosus among the company’s main shareholders. The Dutch group, specializing in international technological investments, is leading financing combining new capital and the sale of existing shares, alongside historic investors such as Index Ventures and Teachers’ Venture Growth.
In March, Alan already announced funding of around 100 million euros intended to support its European development. A few months later, a new round of financing almost five times greater would strengthen the company’s financial resources.
Usually, two situations lead a company to return to the market so quickly: an acceleration much greater than expected or a greater need for financing than anticipated. The indicators published by Alan point more towards a third hypothesis: that of a society which takes advantage of its position of strength to secure resources before a new phase of development.
Fundamentals no longer tell the story of a startup seeking funding
In a decade, Alan has established itself as one of the main European players in digital health insurance. It now boasts more than 1.1 million members, nearly 800 million euros in annualized recurring revenue, growth of 53% over one year and a goal of crossing the symbolic threshold of one billion euros in ARR before the end of 2026.
The French market, which still represents the bulk of its activity, is now profitable. The company has also won several major contracts, including that of the French Ministry of Economy and Finance, confirming its ability to compete with historical players on large-scale calls for tenders.
The situation remains different at the consolidated level, international development continues to weigh on the group’s results.
A new relationship to capital
During the first years of their existence, startups raise funds to finance their development. Capital is used to recruit, build a product, win over customers or absorb losses.
From a certain threshold, the logic changes, and when revenues become sufficiently significant and growth remains sustained, raising funds no longer responds solely to a financial need and capital becomes a strategic asset.
Companies like Stripe, Databricks and SpaceX have raised considerable amounts even though they already had a significant activity. The objective was no longer simply to finance their operations, but to accelerate their trajectory and maintain a lead over their competitors.
Buy time more than money
What does an additional 480 million euros really do when a company is already approaching a billion euros in recurring revenue?
The first answer is international expansion. Unlike a SaaS publisher, Alan operates in a sector where each country has its own regulatory framework, health system, partners and operational constraints. Deploying an activity in Belgium, Spain or Canada is not simply a matter of translating an interface or opening a sales office.
Each new market requires regulatory investments, local teams, medical partnerships and product adaptation. Having abundant cash allows you to carry out several deployments in parallel without constantly arbitrating between priorities.
The second answer concerns artificial intelligence. Alan does not develop large language patterns. On the other hand, the company is gradually integrating AI throughout its entire value chain: contract pricing, reimbursement management, processing of requests, patient orientation, appointment making and conversational assistant.
This strategy involves continued investments in infrastructure, data, engineering teams and the integration of new models. Again, the availability of capital speeds up execution.
Finally, such cash opens up other perspectives: targeted acquisitions, market consolidation, strategic partnerships or preparation for a future IPO, without depending on short-term market conditions.
On this subject Jean Charles Samuelan CEO of Alan answers us: “ We will continue to accelerate development in Europe and outside Europe, prepare new acquisitions and continue to invest in artificial intelligence. »
Why Prosus now?
The choice of Prosus also deserves to be observed, the group listed in Amsterdam (and majority owned by the South African group Naspers) has established itself as one of the most active technological investors in the world. Its portfolio includes consumer platforms, e-commerce players, fintechs and digital companies operating at very large scale (Tencent, Delivery Hero, Dott
Prosus finances Alan, a new generation of European champions, a true platform that combines software, health services, artificial intelligence and digital distribution.
Fahd Beg, Investment Director of Prosus Group, shares on this subject: “ Health represents
one of the sectors offering the greatest potential for transformation thanks to intelligence
artificial. Alan has developed a unique platform, where insurance, prevention and
support in the care pathway reinforce each other to offer
seamless and integrated health experience. We are delighted at the idea of supporting Alan in
this new phase of development and accelerate its international expansion by
leveraging the expertise and resources of our ecosystem. »
What Jean Charles Samuelan adds to the editorial staff of FW.MEDIA: “ ThereOn the choice of Prosus, it is both because they are extremely long term, but also because they have a very deep ecosystem logic in many geographies, which can help us with expansion. They are also very advanced in artificial intelligence with their large commerce model, and very strong in consumer, which speaks to us.”
The questions Alan now asks
The first naturally concerns international expansion. Nearly 80% of Alan’s revenues still come from the French market. The real change of scale will depend on its ability to reproduce its model in several large European countries.
The second concerns the use of capital. Will the company exclusively focus on organic growth or will it also seek to accelerate its development through acquisitions?
After the conquest of the French market and the European acceleration, another question arises: is Alan building a European health insurance champion… or the foundations of a truly global player?
Finally, this raising could also constitute an additional step towards a future liquidity operation. With a valuation of 5.5 billion euros and a target of more than 1 billion euros in recurring revenue, Alan is gradually approaching the profile of large technology companies likely to consider an IPO when market conditions are right.
