Telehealth Company 98point6 Raises $118 Million

98point6, a provider of on-demand text-based primary care service through a mobile app, raised $118 million in a Series E funding round.

The company has raised $247 million to date with this round, including a $43 million Series D funding round in April 2020.

Growth Fund of L Catterton (a consumer-focused private equity firm) and Activant Capital (a growth equity investment firm focused on technologies disrupting legacy industries) co-led the financing round with additional participation from Goldman Sachs Merchant Banking Division.

The company plans to further invest new funds in research and development and expand its text-based digital care platform.

According to the company, the platform now has more than 240 commercial partnerships with brands, including Banner|Aetna, Boeing, Circle K, Red Bull North America, Sam’s Club, and Teamsters Western Region, and New Jersey Health Care Fund.

98point6 offers on-demand primary care services, text-based diagnosis, and treatment via its AI-enabled mobile app. The app collects information about the user and builds a patient profile before matching them with a provider. Later, patients can review a personalized care plan within the mobile app that includes prescription and lab reports. The service may also connect them to in-person care if relevant.

Robbie Cape, CEO, and co-founder of 98point6 said: “98point6 has experienced accelerated growth over the last year, due in part to the pandemic, as more organizations recognized the existing and undeniable desire for on-demand, digitally enabled care”.

“Our approach to care replaces the high cost and complexities of navigating the healthcare system while meeting the expectations and preferences of today’s healthcare consumer. This investment is a testament to the strength of our platform, and I am confident we will benefit from the deep expertise of both the L Catterton and Activant teams,” added Robbie Cape.

Telehealth companies raised over $1.4 billion in Q3 2020 compared to $962 million in Q2 2020, a 50% increase QoQ. Recently, Cerebral, a mental health telemedicine company that provides ongoing, comprehensive access to online care and medication management for anxiety, depression, and insomnia, raised $35 million in Series A funding.

Image Credit: 98point6