LONDON — Swedish online health start-up Kry said Tuesday that it’s raised $300 million in a mega funding round, as investors look to capitalize on the pandemic-driven boom in telehealth services.
The investment, led by CPP Investments and Fidelity Investments, values the seven-year-old firm at $2 billion. That’s almost three times the $700 million Kry was worth in a 2020 financing round.
Existing investors including Ontario Teachers’ Pension Plan, Index Ventures and Accel also backed Kry’s latest round.
“This investment will help us empower patients to make active choices about their health in partnership with thousands of public and private healthcare professionals in Europe,” Kry CEO and co-founder Johannes Schildt said in a statement.
“Working in partnership with healthcare systems, governments, and clinicians, we can deliver high quality healthcare, improve patient access, and create healthier societies,” he added.
Kry is one of Europe’s largest providers of online doctor appointments. The company operates under the name Livi in the U.K. and France. It also expanded to the U.S. last year with the launch of a free video consultation platform called Livi Connect.
The firm is one of several tech start-ups that have benefited from surging demand for digital health apps as coronavirus lockdown restrictions made in-person interactions less feasible. And investors are taking note.
Last week, French online health insurer Alan announced it had raised 185 million euros ($223.5 million) at a 1.4 billion euro valuation. Meanwhile, Babylon Health, a rival to Kry based in the U.K., is reportedly exploring a deal to go public via a merger with a special purpose acquisition company, or SPAC.
Kry and its backers are betting the acceleration of health tech in the last year is a “mega trend” that’s likely to stick around long after the pandemic ends. Kry says it has facilitated over 3 million medical consultations since it launched in early 2015, with video appointments more than doubling year-on-year in 2020.
Kry said it would use the fresh cash to expand its geographic footprint, add mental health services to its platform, grow its team and explore more acquisitions and strategic partnerships. JPMorgan acted as lead placement agent, while Goldman Sachs was also a placement agent for the deal, Kry said.