Johannes Schildt, co-founder and CEO of the Swedish telemedicine start-up Kry.
LONDON – Swedish online health start-up Kry announced Tuesday that it had raised $ 300 million in a mega funding round as investors seek to capitalize on the pandemic-induced boom in telemedicine services.
The investment, led by CPP Investments and Fidelity Investments, values the seven-year company at $ 2 billion. That’s nearly three times the $ 700 million Kry was worth in a 2020 round of funding.
Existing investors, including the Ontario Teachers’ Pension Plan, Index Ventures, and Accel, also supported Kry’s latest round.
Kry is one of the largest European providers of online medical appointments. The company operates under the name Livi in Great Britain and France. With the introduction of a free video advice platform called Livi Connect, the company expanded to the USA last year.
The company is one of several technology startups that have benefited from rising demand for digital health apps as coronavirus lockdown restrictions have made face-to-face interactions less feasible. And investors take note.
Last week, French online health insurer Alan announced it had raised 185 million euros on a valuation of 1.4 billion euros. Meanwhile, Babylon Health, a UK-based rival of Kry, is reportedly considering an IPO through a merger with a special purpose vehicle (SPAC).
Kry and his supporters are betting that the acceleration of health technology over the past year is a “megatrend” that is likely to continue long after the pandemic ends. Kry says there have been more than 3 million medical consultations since launching in early 2015, and the number of video appointments more than doubled in 2020 from the previous year.
“I think the underlying megatrend of moving health to digital was there long before the pandemic,” Johannes Schildt, CEO and co-founder of Kry, told CNBC in an interview on Tuesday.
“Many of the policy changes that we have seen across Europe were actually in place before the pandemic, but this has obviously accelerated change.”
Kry said it would use the fresh money to expand its geographic footprint, add mental health services to its platform, expand its team, and explore more acquisitions and strategic partnerships. JPMorgan acted as lead placement agent while Goldman Sachs also acted as placement agent for the deal, Kry said.