Venture Capital: Telehealth Company Ro Raises $200M at a $1.5B Valuation
The three-year-old startup says it has achieved five million patient-physician interactions.
Ro, the NY-based, patient-driven telehealth company, completed a $200m Series C funding round on Monday.
Existing investor General Catalyst led the round. Other existing investors that participated included FirstMark Capital, Torch, SignalFire, TQ Ventures, Initialized Capital, 3L, and BoxGroup. The Chernin Group invested in the startup for the first time. (CNBC)
Ro has now raised a total of $376 million.
RO’s business – (and vision) the “Shopify for healthcare”
Ro commenced business just three years ago and offers its customers telehealth appointments as well as mail-order prescriptions.
Initially, Ro was Roman – a site for men’s health and problems such as hair loss, erectile dysfunction, premature ejaculation and skin conditions.
It later branched out into women’s health under the brand name Rory, and then onto Zero, a smoking cessation service.
For Roman and Rory, users pay a recurring fee to access a monthly supply of their prescriptions.
The latest venture from the telehealth startup is Ro Pharmacy, which delivers more than 500 generic medications priced at a flat fee of $5 each per month, according to MedCityNews.
Patients pay in cash to Ro, which doesn’t accept insurance.
Founder Zachariah Reitano told CNBC that the traditional health care system charges arbitrary prices, and suffers from too much waste and inefficiency. Worse, it doesn’t give priority to patients’ outcomes and experiences.
On the other hand, Ro’s transparent pricing and care on demand are differentiators that would prove attractive even to insured patients.
“Even if they might have confidence that in-person care might be right for them, they might start it online,” Reitano said to MedCityNews on a phone interview. “I think you’ll see this digital-first mentality.”
The company’s business has been growing well, and it now boasts 5 million patient-physician interactions.
Though its still unprofitable, Ro clocks revenues of $250 million annually.
The new funds will help advance its ambitions in the areas of in-home testing, virtual urgent care visits, and remote monitoring of patients with chronic conditions.
Ro intends to double its workforce in the next six months.
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