Devoted Health, an insurtech focused on Medicare Advantage, closed a $175 million Series E funding round on Friday.
While the deal is one of the largest funding rounds of 2023, it is significantly lower than the company's $1.15 billion Series D round in October 2021.
Read more: Digital health funding on ace for worst year since 2019: report
But the Series E round does value Devoted Health at $12.9 billion, according to a source close to the deal. This is actually an increase from the 2021 deal when it was valued at $12.7 billion.
Devoted Health said a group composed of venture capital companies The Space Between, Highbury Holdings, GIC, Stardust Equity, Maverick Ventures and Fearless Ventures led the round.
The all equity deal will help support Devoted's growth plans, according to a company spokesperson.
Devoted offers Medicare Advantage plans to more than 140,000 members across 13 states. It also provides tech-enabled preventative care services to its members through its virtual-first and in-home medical group, care navigation and software services.
The insurtech sector is broadly attempting to shift from a hyper-growth model to one that is more grounded in profitability. Startup health insurance companies such as Bright Health, Clover Health and Oscar Health made radical departures from their original business models in 2023 and enter 2024 attempting to regain the allure that attracted billions of dollars in investments.