Oscar Health has raised an additional $165 million in investments from two of Google's sister companies, and its team projects that Oscar will be profitable soon.
The funding round was led by the Founders Fund and included investments from Alphabet companies Verily and Capital G, along with other investors such as Fidelity and Thrive Capital, according to a blog post from Oscar.
Oscar enrolled 250,000 members in 2017 and it projects at least $1 billion in premium revenue, according to the post. Sources told CNBC that the investments bring Oscar's value to $3.2 billion; it was previously valued at $2.7 billion in 2016.
Oscar was founded in 2012 and launched with $727 million in venture capital backing. However, its financial results to date have been a disappointment, with more than $200 million in losses in 2016 alone. Oscar appeared to stem the bleeding in 2017, reporting a $57 million loss in the first half of the year.
Despite financial struggles, Oscar has secured high-profile partnerships with other groups such as the Cleveland Clinic, Humana and AXA. It shares risk 50/50 with its partners to ensure member costs stay low.
Because Oscar brought in more in premiums than it paid out in medical claims last year, its leaders see the company pulling itself out of the red. CEO Mario Schlosser has pointed to the company's sharp decline in medical loss ratio as a sign the company is on the upswing.
"And before you know it, we’ll be profitable," Chief Financial Officer Brian West told CNBC. "It's around the corner."
The new funding will allow Oscar to "accelerate the pursuit" of its mission to offer low-cost, high-quality insurance, according to the post. It plans to continue expanding and pursuing new partnerships, while also bolstering and growing its technology platforms.
Oscar is planning to expand to four or five new cities each year, with products available in different market segments, according to the post.
Taking advantage of real-time data is a crucial component to Oscar's approach, co-founder and CEO Mario Schlosser said last month. In the post, Schlosser and Oscar co-founder Joshua Kushner tout "the highest levels of member engagement in the industry," and say that engagement translates to better care.
"We need no reminder that the stakes are high—an opaque, uncompetitive system has led to skyrocketing premiums and deductibles, and far too many Americans have been asked to sacrifice their wages for health care they can’t afford to use," Schlosser and Kushner said. "With every new member, Oscar can help bring the system a little closer to where it should be."