- Ro has announced that it has raised $200 million in funding at a $1.5 billion valuation. Plus the company also revealed that it is now generating $250 million in annual revenue without taking insurance.
Ro has announced that it has raised a $200 million Series C round of funding led by existing investor General Catalyst with significant participation from existing investors FirstMark Capital, Torch, SignalFire, TQ Ventures, Initialized Capital, 3L, and BoxGroup as well as first time investor The Chernin Group. Including this round of funding, Ro has raised a total of $376 million since it was founded in 2017.
“Every single person deserves high-quality, affordable healthcare. At Ro, we believe the only way to do this is by putting patients at the center of their care and building technology to empower providers to do what they do best — help people. This new investment will further our mission to become every patient’s first call. We’ll continue to invest in our vertically-integrated healthcare ecosystem, from our Collaborative Care Center to our national pharmacy operating system. This is just the beginning of Ro’s patient-centered healthcare platform,” said Ro co-founder and CEO Zachariah Reitano.
This round of funding comes on the heels of several major milestones for the company. The milestone includes expansion of Ro’s clinical offering to three digital health clinics: Rory for women’s health, Roman for men’s health, and Zero for smoking cessation. Between these three clinics, Ro now treats nearly 20 conditions, including sexual health, weight loss, dermatology, and allergies. And the company successfully launched Ro Pharmacy, an online cash pay pharmacy offering over 500 generic medications for just $5 per month per drug.
Ro also launched Plenity — which is an FDA-approved weight management aid — on Ro’s platform through a partnership with biotechnology company Gelesis. And an exclusive partnership with Pfizer Greenstone to bring transparency and the highest quality medication to patients was signed. Plus Ro was integrated with Ribbon Health’s comprehensive nationwide directory of primary and specialty healthcare providers thus promoting frictionless continuity of care between telehealth and in-person settings.
In an interview with CNBC, the company also revealed that it is now generating $250 million in annual revenue without taking insurance. Based on this funding round, Ro is now valued at $1.5 billion.
With this round of funding, Ro is going to further its mission to build technology to address access and affordability challenges faced by patients in today’s healthcare system. And in this effort, Ro plans to offer remote patient monitoring with integrated devices for chronic disease management, urgent care and at-home testing on its platform in the near future. Plus Ro will double the size of its engineering team.
“Telehealth companies like Ro are using technology to address long-standing healthcare disparities that have been exacerbated by Covid-19. By empowering providers to leverage their skills as efficiently and effectively as possible, Ro delivers affordable, high-quality care regardless of a patient’s location, insurance status, or physical access to physicians and pharmacies,” added Dr. Joycelyn Elders, MD, Ro Medical Advisor and former US Surgeon General.
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