Thatch’s platform helps employers move from traditional group health plans in which they choose one plan for their workforce to a “consumer-directed model” in which they give employees a budget and the ability to choose their own coverage, according to the release.
With this model, employers set a defined health benefits budget, and employees use those tax-free dollars to choose an individual health plan, while using any remaining funds for eligible healthcare expenses, the release said.
Thatch’s infrastructure and distribution network ease the transition to this model by connecting employers and employees to individual coverage; integrating with major health insurance carriers, payroll providers and benefits platforms; and enabling employers to move to the new model without rebuilding their existing benefits infrastructure, per the release.
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The company’s revenue has grown nearly sevenfold over the past year, and the number of employers using the platform has surpassed 5,000, according to the release.
“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.”
It was reported in April 2025 that Thatch raised $40 million in a Series B funding round.
Ellis said at the time that about half of members have about $250 left over each month, on average, and that they can use that balance to pay for things that health insurance doesn’t cover.
Thatch’s Series C funding round included both existing and new investors, the company said in a Tuesday blog post.
Jahanvi Sardana, partner at Index Ventures, which is one of the investors, said in the release that Thatch is rebuilding 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.”
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