US-based K Health Secures $50 Mn Funding to Enhance AI-Driven Primary Care

This recent funding round brought K Health's total capital to $380 million, as confirmed by Ran Shaul, K Health's cofounder and chief product officer.

US-based K Health, a digital primary care startup, raised $50 million in an equity funding round. 

The investment was led by Marcelo Claure's Claure Group. It included participation from Pablo Legorreta, founder and CEO of Royalty Pharma, along with existing investors Mangrove Capital Partners, Valor Equity Partners, and Atreides Management LP.

Founded in 2016 by Adam Singolda, Allon Bloch, Israel Roth, and Ran Shaul, the New York-based startup, uses AI to educate patients about their symptoms and connect them to primary care.

The primary care startup plans to use the funds to enhance its AI technology, which is crucial for personalizing primary care. 

This recent funding round brought K Health's total capital to $380 million, as confirmed by Ran Shaul, K Health's cofounder and chief product officer. The startup's current valuation stands at approximately $900 million.

"We are committed to refining our AI capabilities to improve patient care and support our expansion across the U.S. through strategic partnerships with health systems," Shaul stated.

Growth & Patient Reach

Since its launch in 2016, K Health has expanded its services to 48 states, working with multiple health systems and thousands of doctors. 

The startup’s AI-driven chat function suggests potential diagnoses based on symptoms, medical history, age, and gender. This platform processes data from millions of patients, suggesting conditions and connecting users with doctors or nurses when necessary.

Despite its rapid growth, K Health has yet to achieve profitability. However, Shaul expressed optimism, stating, "We are nearing profitability. Our AI capabilities allow us to provide high-quality care cost-effectively, setting us apart from traditional brick-and-mortar clinics."

Looking Ahead

K Health may launch an initial public offering (IPO), although no specific timeline has been set. 

Further, the startup aims to continue expanding and improving AI-driven healthcare services. Shaul highlighted the strategic importance of partnering with investment firms such as Claure Group, emphasizing their long-term vision and substantial financial backing.

K Health’s growth trajectory contrasts with other major players' pullback from primary care investments. 

Walmart recently announced the closure of its health centers and virtual care services, while Walgreens is shutting down its VillageMD primary care clinics. CVS is also reevaluating its primary care investments following its acquisition of Oak Street Health.

"Retail health clinics have not lived up to expectations. Effective primary care requires continuous management and high-quality service, which our AI-powered platform provides efficiently," Shaul remarked. 

In a recent development, US-based telepsychiatry provider Talkiatry secured $130 million in a new equity and debt financing round led by Andreessen Horowitz. The funding round also saw participation of Perceptive Advisors and debt financing from Banc of California.