Thatch, a San Francisco-based startup offering health insurance solutions, has raised US$40 million in series B funding.

Led by Index Ventures, with participation from Andreessen Horowitz, General Catalyst, and others, the round brings Thatch’s total equity funding to US$84.5 million since its founding in October 2021.

The company’s valuation has tripled since its series A round in February 2024.

Thatch enables employers to offer Individual Coverage Health Reimbursement Arrangements (ICHRA) to employees, allowing tax-free funds for medical insurance or other healthcare expenses.

CEO Chris Ellis highlighted that 50% of users maintain an average balance of US$250 per month.

The company has onboarded over 1,000 companies, including Dave’s Hot Chicken and Jersey Mike’s.

Thatch plans to use the new funding to enhance its platform and expand in the employer-sponsored healthcare sector.