Doctor On Demand Announces $75 Million in Series D Financing to Expand Virtual Care

Doctor On Demand, a provider of virtual care services, secured $75 million in Series D financing.

The San Francisco-based company provides virtual care services directly to consumers through employers, health plans, and Medicare Part B. Doctor On Demand offers complete mind and body services (including preventive care, chronic care, urgent care, and behavioral health care services) across 50 states in the United States, through its cloud platform (mobile app and website).

To ramp up its virtual care service globally last year, the company partnered with Humana and launched On Hand, a health plan centered on comprehensive virtual primary care. Walmart is also one of its known partners.

“COVID-19 awakened the industry to the benefits of virtual care as a means to reach all patient populations, and at the same time, demonstrated the high quality of care that can be delivered in a virtual-first setting,” said Hill Ferguson, CEO of Doctor On Demand. “Doctor On Demand will remain dedicated to delivering high-quality, compassionate care to our patients, and innovative, cost-effective solutions to our partners as we continue to expand access and launch new capabilities.”

The new Series D funding, led by General Atlantic, a growth equity firm, will continue the company’s rapid expansion in the U.S. and – and brings its total financing to over $230 million. The company’s existing investors also participated in the round.

Despite COVID-19, telehealth companies raised a record of almost $2 billion in 1H 2020. This year, Amwell (formerly American Well), a telehealth company, closed a $194 million in its Series C financing round led by Allianz X, the investment arm of German insurance company Allianz led the financing round with participation from drugmaker Takeda.

In another round, KRY, Swedish on-demand medical consultations providers through video calls raised $155 million in Series C. The funding round was led by Ontario Teachers’ Pension Plan (Ontario Teachers’) through its Teachers’ Innovation Platform (TIP). Existing investors Index Ventures, Creandum, and Accel also participated in the round.

According to a McKinsey & Company survey, telehealth adoption in the United States has skyrocketed (due to COVID-19 pandemic), from 11% in 2019 to 46% in 2020. McKinsey predicts that up to $250 billion of current U.S. healthcare spending could probably be virtualized.

Image Credit: Doctor On Demand