French health insurance startup Alan has cemented its status as one of Europe’s standout scale-ups, securing a €5 billion valuation after its latest funding round. The new price tag, up from €4.5 billion in 2024, comes as many European unicorns are slipping below the billion-euro mark, underscoring how rare Alan’s trajectory has become in the region’s tech ecosystem.

Founded in 2016, Alan set out to rebuild health insurance around a fully digital, user-centric experience. The company has since grown to a 740-person team and now covers around one million people, including employees, freelancers and retirees. Through its app, members can manage reimbursements, consult doctors remotely and monitor their health habits, positioning Alan as both insurer and wellness companion.

The new valuation is tied to a €100 million funding round led by long-time backer Index Ventures. They were joined by new investors Greenoaks, Kaaf and SH, as well as high-profile business angels such as Shopify founder Tobi Lütke and World Cup–winning footballer Antoine Griezmann. Belgian bank-insurer Belfius, which previously led Alan’s Series F and is a strategic partner, also participated, reinforcing the company’s ties with established financial institutions.

Fuelled by this capital, Alan says it now has the resources to invest heavily in technology and artificial intelligence. Chief executive and co-founder Jean-Charles Samuelian-Werve, who also advises French AI firm Mistral AI, has framed the next phase as one where smarter automation and personalised guidance will be central to how members navigate healthcare.

On the commercial front, Alan has been steadily broadening its base beyond startups and SMEs. It recently won a major public-sector contract to provide health coverage to as many as 135,000 civil servants and their families, adding to a roster of private-sector clients in France and abroad. The company reports annual recurring revenue of €785 million, a 53 percent increase over the previous year, and says it is now operationally profitable in France, its first and largest market.

Alan has expanded into Belgium and Spain, where it counts global names such as HP and Volkswagen among its customers, and more recently into Canada, where it holds licenses across all provinces. While the group is nearing operating break-even overall, management is prioritising international growth and product development over short-term profitability, targeting $1.16 billion in annual recurring revenue in 2026. For now, investors appear comfortable backing that growth-first strategy.