Zorro, a next-generation benefits administration platform, has raised $20 million in Series A funding to accelerate its mission of transforming how American workers plan for and purchase healthcare. The funding round was led by Entrée Capital, with participation from existing investors 10D and Pitango, positioning the company to expand its AI-driven platform that leverages Individual Coverage Health Reimbursement Arrangements (ICHRA) to create more flexible and personalized healthcare options.

The platform addresses the mounting challenges of traditional group healthcare plans by enabling employers to transition to a defined contribution model, similar to 401(k) retirement plans. This approach provides employers with predictable budgeting while giving employees greater autonomy in selecting healthcare coverage that meets their specific needs. The shift represents a fundamental change in how companies approach employee benefits, moving away from one-size-fits-all solutions toward personalized healthcare planning.

"Healthcare is not one-size-fits-all, and with skyrocketing plan costs, we're past due for a viable alternative to traditional group coverage," said Guy Ezekiel, Zorro CEO and Co-Founder. "Zorro is building a new future where health and wealth planning are integrated, giving employers budget predictability without sacrificing quality and individuals the autonomy to make smart, personalized decisions for themselves and their families."

Zorro's comprehensive platform serves three key stakeholder groups through distinct functionalities. For brokers, the platform provides proprietary tools that enable real-time comparisons between existing group plans and ICHRA options, facilitating recommendations that balance cost control with flexibility. Employers benefit from the ability to establish fixed budgets and allocate tax-free stipends for employees to purchase individual coverage. Meanwhile, employees gain access to an AI-powered decision engine that analyzes hundreds of plans, considering unique healthcare needs and financial risk tolerance to recommend optimal coverage bundles.

The platform's effectiveness is reflected in its rapid growth and measurable results. Zorro has experienced enrollment growth exceeding 800% year-over-year for 2025, demonstrating strong market demand for its alternative approach to benefits administration. The AI-driven recommendation engine has proven particularly effective, with over 75% of employees enrolled through Zorro selecting insurance plans based solely on platform recommendations without requiring human intervention.

Cost savings represent another significant achievement for the platform. On average, Zorro clients have reduced premium costs by more than 20% compared to traditional group plans while simultaneously providing employees with more personalized coverage options. This combination of cost efficiency and improved personalization addresses two of the most pressing challenges facing employers and employees in today's healthcare landscape.

The Series A funding will enable Zorro to scale its operations, enhance its AI capabilities, and expand its market reach as more employers seek alternatives to conventional group healthcare coverage. As healthcare costs continue to rise and workforce expectations evolve, Zorro's platform represents a timely solution that aligns employer budgetary needs with employee preferences for personalized healthcare options.

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