Health-Care Startup Ro Raises $200 Million in New Funding

The company said it will use the capital to invest in technology and double its engineering team

Ro co-founders Rob Schutz, Zachariah Reitano and Saman Rahmanian

Photo: Ro

Ro, an online health-care startup, said Monday that it raised $200 million in a new funding round, bringing its total raised to $376 million.

2020欧洲杯APPThe new round values Ro at $1.5 billion, according to people familiar with the matter.

2020欧洲杯APPThe New York-based company said it will use the new funding to invest in technology, such as remote patient monitoring, and double its 70-person engineering team.

2020欧洲杯APPRo, which currently employs about 250 people, runs a digital-health site for men and another one for women. A network of health-care professionals diagnoses patient conditions and prescribes medicines, which Ro distributes. The company says its ability to care for patients from an initial evaluation to treatment delivery sets it apart.

2020欧洲杯APP“One of the things that differentiates Ro from other health-care companies or telemedicine companies is our vertical integration,” said Zachariah Reitano, a Ro co-founder and its chief executive.

2020欧洲杯APPRo treats some 20 conditions, including sexual health, weight loss and allergies. It says it has handled more than 5 million health-care visits. Ro lets patients and providers interact via secure messaging, phone or video and has built custom physician, pharmacy and patient apps.

2020欧洲杯APPThe company also has a site that provides treatment plans for people trying to quit smoking and recently opened an online pharmacy, which it said offers 500 generic medications at $5 a month per drug. The company said it expects to generate $250 million in revenue in 2020.

The new funding round was led by General Catalyst, an existing investor, with participation from other existing investors and one new backer, Chernin Group.

2020欧洲杯APPOne area Ro is looking to develop with the new capital is remote patient monitoring. The company wants to allow medical devices, such as simple oxygen sensors that are placed on patients’ fingers, to communicate with its platform. Remote patient monitoring would allow health information to be more easily shared with doctors, who are then better positioned to help patients, the company said.

General Catalyst Managing Director Hemant Taneja said he thinks the company understands what that life-cycle relationship should be with its customers.

2020欧洲杯APP“It starts on the internet. And they’ve got the pharmacy operations. Obviously, the next thing is to be able to help triage health-care-related needs that consumers have that can be, perhaps, met online without having to go see an actual provider, in person.”

The company said it will beef up its engineering staff with software engineers, data analysts, data scientists and other technology professionals. Ro also said it will add staff to other areas of the company, including marketing.

2020欧洲杯APP“Our ultimate vision is to be every patient’s first call,” Mr. Reitano said. “So whenever they have a question or a symptom, they reach out to Ro first.”

Write to John McCormick at mccormick.john@kinofilmz.com

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