Oscar Health announces IPO
New York-based Oscar announced its plans to commence an initial public offering. With a client base of about 529,000, Oscar provisionally listed the size of their offering at $100 million, however that range may alter as the price of shares fluctuates. Founded in 2012, the tech-focused insurance company will be listed under the New York Stock Exchange under the OSCR symbol. The company has raised about $1.6 billion in funding led by Alphabet, Khosla Ventures, General Catalyst, and more. Oscar has also recently partnered with Cleveland Clinic and insurance company Cigna, which according to Oscar speaks volumes about the reliability of their technology.
In 2020, Oscar amassed $1.67 billion in revenue and $1.04 billion in 2019, with losses of $407 million and $261 million, respectively. With plans offered across 18 states, including California, Texas, and Florida, Oscar has concentrated their efforts on accessibility with services that incorporate member apps, wearable health trackers, and a 24/7 telehealth service. The company states that 47% of their overall subscribing personnel are monthly active users, and 71% of these members have used their assigned virtual care team to manage their services.
With their expected growth, Oscar hopes to continue the expansion they’ve been seeing. In their S-1 the company wrote: “To make significant investments to further market, develop, and expand our business, including by continuing to develop our full-stack technology platform and member engagement engine, acquiring more members, maintaining existing members and investing in partnerships, collaborations, and acquisitions. In addition, we expect to continue to increase our headcount in the coming years.”