Thatch Raises $108 Million at $1 Billion Valuation

Thatch secured $108 million at a $1 billion valuation, according to a press release dated Tuesday, Sept. 15. The company stated the capital will drive expansion of its health benefits platform.

PYMNTS noted that the service shifts employers from conventional group plans to a consumer-directed model. In this arrangement, companies allocate a fixed benefits budget, while workers utilize tax-free funds to select personal insurance. The release indicated that any unspent amounts may be applied to qualified healthcare costs.

The business reported a nearly sevenfold increase in revenue over the previous year. Additionally, the platform now serves more than 5,000 employers, the company said. Thatch had previously secured $40 million in a Series B round in April 2025.

“For too long, healthcare has been the one major purchase in someone’s life they never actually got to make,” Thatch Co-Founder and CEO Chris Ellis said in the release. “Give people control over their own healthcare dollars, and the first thing they do is ask what something actually costs. That’s the behavior change this round is built to scale.”

Jahanvi Sardana, partner at Index Ventures, stated in the release that Thatch is restructuring the healthcare market around the individual. “With AI, the end state is bigger than shopping: an agent that knows you, holds your wallet and can find, book and pay for the right care,” Sardana said. “The magic is that you stop navigating healthcare and start being taken care of.”