Ro, an online health startup, started by selling hair loss supplements and erectile dysfunction medication to men, is entering into the in-home healthcare service space with the acquisition of the digital platform, Workpath.
The Workpath software platform enables healthcare companies to offer on-demand, in-home care, and diagnostic services with an API system. The company’s full-service platform includes scheduling and dispatch software, a network of healthcare providers, diagnostic processing, and reporting, and more.
Recently, Ro raised $200 million in a funding round at a $1.5 billion valuation. The company has raised $376 million since its founding in 2017 and generates $250 million in revenue every year.
Ro currently operates three online health clinics – Rory for women, Roman for men, and Zero for addiction treatment – and a pharmacy network for prescription and home delivery. To date, Ro has facilitated more than five million digital healthcare visits in the United States, including 98% of primary care deserts.
“Ten years from now, more healthcare services will be delivered online or in-home than in every hospital, doctor’s office, or pharmacy combined, and this acquisition will help accelerate that change,” said Zachariah Reitano, Co-Founder and CEO of Ro.
“The company’s full-service platform includes scheduling and dispatch software, a nationwide network of healthcare providers, diagnostic processing and reporting, and more. Ro’s offering of Workpath’s platform will position the combined company as an integral part of the healthcare industry’s transition to connect the best of virtual and in-person care.”
Mergers and acquisitions (M&A) continue to be the most popular source of exit for digital health investors and companies. A total of 132 digital health companies were acquired in the first nine months (9M) of 2020, compared to 125 in 9M 2019, according to Mercom’s 9M 2020 Digital Health Funding and M&A Report. Recently, Teladoc Health, a telemedicine company, acquires InTouch Health, a telehealth solution provider for hospitals and health systems, for $600 million.