Lemonaid Health, a direct to consumer telehealth company, raised $33 million in a Series B funding round.
The funding round was led by Olive Tree Ventures with participation from Artis Ventures, Correlation Ventures, Hikma Ventures, and Sierra Ventures.
With the investment, the company plans to expand its medical professional’s team and increase the number of services being offered to patients, including treatment for asthma, hypertension, Type 2 diabetes, and more mental health services.
According to the company, currently, its healthcare services are available across the U.S. Through the company website, patients can have a teleconsultation with a licensed doctor or nurse practitioner. Patients are also offered free and fast delivery of prescription medications through the platform to speed treatment.
The telehealth platform has treated over one million patients for a variety of medical conditions, including anxiety and depression, urinary tract infections (UTIs), birth control, hair loss, hypothyroidism, erectile dysfunction, genital herpes, and sinus infections, the company said.
Typically, the consultation fee is $25, covering the doctor’s evaluation and prescription, but not the medicine.
Lemonaid said the coronavirus pandemic had accelerated the telehealth adoption like never before. The company also witnessed a surge in demand for its healthcare services.
According to a McKinsey COVID-19 Consumer Survey, telehealth’s consumer adoption in the U.S. has skyrocketed, from 11% in 2019 to 46% in 2020. Further, healthcare providers are seeing 50 to 175 times the number of patients via telehealth platforms than they were before the outbreak, the survey stated.
“The U.S. healthcare system has struggled to deliver the services patients need in a way that is convenient and effective. The challenges of providing routine care has been exacerbated recently as the majority of health resources have been focused on responding to the coronavirus pandemic,” said Paul Johnson, co-founder, and CEO of Lemonaid Health.
Paul Johnson further added, “We founded Lemonaid Health with a vision to increase access to affordable, high-quality healthcare. As more consumers have turned to telehealth in the last six months, we have seen significant growth in demand for our online services. With the additional financing, we will be able to help even more patients get the care they deserve and expand our services in partnership with other healthcare providers.”
Telehealth companies raised almost $1.9 billion in 1H 2020. Recently, Ro, an online direct to consumer telehealth startup, which started by selling hair loss supplements and erectile dysfunction medication to men, raised $200, at a valuation of $1.5 billion.
Lemonaid Health, founded in 2013, has raised over $53 million to date, including an $11 million Series A funding in 2017, which was led by Novartis Venture Fund and Hikma Ventures.
Image credit: Lemonaid