Thatch, a health benefits platform, announced on Tuesday that it raised $108 million in funding at a $1 billion valuation, according to Dealbreaker. The financing was structured as a Series C funding round from The General Partnership, Index Ventures, General Catalyst and Andreessen Horowitz, according to Dealbreaker.
Series C syndicate and participation
Dealbreaker reported that ADP Ventures, Paychex, Eli Lilly and Company, Scale Venture Partners, QuantumLight, SemperVirens, Quiet Capital and Avid Ventures also participated in the Series C round. In total, Thatch has raised $192.5 million in equity funding, according to Dealbreaker.
Product focus: ICHRA and “CHOICE Arrangements”
Thatch helps employers offer Individual Coverage Health Reimbursement Arrangements (ICHRAs), which recently rebranded as CHOICE Arrangements, according to Dealbreaker. Dealbreaker described ICHRAs as arrangements in which employers can provide employees tax-free money to purchase their own individual health insurance plans. Dealbreaker also reported that employees can use the funds for certain healthcare expenses, including GLP-1s and therapy.
More than 5,000 employers use Thatch, including Jersey Mike’s and Smoothie King, according to Dealbreaker.
Use of proceeds: integrations, benefits expansion, and hiring
Chris Ellis, CEO of Thatch, told MedCity News that the funding round will help the company build out the infrastructure behind individual health coverage at scale, according to Dealbreaker. Ellis told MedCity News that this includes deepening integrations with payroll and HR platforms like ADP and Gusto, expanding the ways employees can use their health budgets, and growing the team fast enough to keep up with employer demand, according to Dealbreaker.
Ellis also told MedCity News that Thatch has grown revenue nearly sevenfold in the last twelve months and that it is now working with more than 5,000 employers, according to Dealbreaker. Ellis told MedCity News that the money is going toward making the switch from a traditional group plan to a health budget as seamless as possible for both employers and employees, according to Dealbreaker.
Market data and investor views
Dealbreaker reported that interest in ICHRAs is growing. The number of employers offering ICHRA grew from more than 6,600 in 2025 to more than 12,700 in 2026, nearly doubling in one year, according to a recent report from the HRA Council cited by Dealbreaker.
Jahanvi Sardana, a partner at Index Ventures, said in a statement that, “Every massive consumer market eventually gets rebuilt around the individual – Amazon did it for retail, Expedia for travel, Robinhood for investing. Thatch is doing it for healthcare,” according to Dealbreaker. Sardana also said, “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. The magic is that you stop navigating healthcare and start being taken care of,” according to Dealbreaker.
Ellis said Thatch aims to change the way the healthcare industry is funded, according to Dealbreaker. Ellis said, “Right now healthcare is the only industry that calls its customers ‘patients,’ a word that literally means someone who suffers and waits,” and added, “When an employer picks your insurance for you, the people actually competing for your business are HR benefits consultants, not you,” according to Dealbreaker. Ellis also said, “Our bet is that healthcare works the same way once individuals hold the dollars,” according to Dealbreaker.
Widely-known context: a “Series C” is commonly used to describe a later-stage venture financing round following earlier institutional rounds. Widely-known context: a $1 billion valuation is often described in venture markets as “unicorn” territory.
