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Viveo Health to raise EUR 20m to expand integrated healthcare platform reach - CEO

CEO Raul Källo comment on recent Margermarket article, publish on 24th of June:

“Actual market potential of the private healthcare industry is EUR 2.37 trillion, not EUR 5 billion as listed in Mergermarket article.”

Viveo Health, an integrated healthcare platform that provides employers with direct access to doctors for their employees, is about to kick-off a process to raise EUR 20m, Chief Executive Officer Raul Källo said.

 

A number of investors have already approached and management expects the process to close by the end of September at the latest, he added. An investor will receive a minority stake in return, he said, conceding that while an independent valuation has not been conducted, management expects future investors to do this.

 

An independent consultant and advisor has been mandated to manage the fundraising process, he said.

 

Källo, who is Viveo Health’s sole owner, invested “a few million euro” when he founded the Estonia-headquartered company in 2017, he said.

 

The company aims to give employees an accurate diagnosis and online video consultations at their disposal with a physician to advise on health conditions, as well as provide preventative medical advice. This benefits employers as it avoids staff taking leave and could lead to up to a 30% reduction in work absenteeism, Källo said quoting company data, while additionally improving employees’ quality of life.

 

The EUR 20m will be deployed towards business development (30%) and marketing and geographic expansion (70%), Källo said. Either an institutional investor, a strategic or venture capital fund with experience in expansion strategies for technology platforms, for healthcare portals or for healthcare services would prove suitable investors, he said.

 

Management is assessing the actuarial and legal framework in a number of European countries to understand the best entry points for the healthcare platform. Källo already has a network of actuaries and legal consultants in a variety of these to assist with the geographic expansion, he said.

 

Viveo Health is looking to sign up corporations in Europe to its portal for customer acquisition, he said. The physicians provided by Viveo Health are ranked according to customer reviews and paid for by private health insurance, Källo said to explain the business model. Its existing B2B model can evolve to B2C when customers with private health insurance sign up to Viveo Health directly, he added

 

Management expects to expand the healthcare platform to 10 countries in Europe starting in Finland during 1H20, he said. At the moment, the company is only present in Estonia. Other countries will follow over the course of the year, Källo said. It expects to continue to expand the platform’s reach and enter the US in 2021, but this may happen sooner given that a number of US-based investors have already approached the company, Källo said.

 

Källo declined to comment on existing and projected financials, but pointed to the EUR 5bn market potential of the European private healthcare industry as a way to show the company’s addressable market and the company’s growth potential.

 

Int terms of an exit route for investors, management anticipates an IPO in five-to-eight years, Källo said.

 

Similar players to Viveo Health include US-based Doctor On Demand, Babylon in the UK and Sweden’s KRY/LIVI, Källo said. However, Viveo caters to the entire patient journey from diagnosis to insurance and specialist medical care.

 

In the US, Oscar Health is considered Viveo Health’s nearest competitor, he added, which is a driver to focus on European expansion in the immediate term rather than the US, he explained. At a later date the company will also look to expand into Asia, starting with Japan, he added but could not provide a set timeframe.

 

 

by Mintoi Chessa-Florea in London

Target: Viveo Health
Other: Babylon Ltd, Doctor on Demand, Inc.
Source: Proprietary Intelligence
Size: 5m-30m (GBP)

Value: 18m GBP (Amount looking to be raised)
Stake Value: between 10% and 29% inclusive
Grade: Confirmed
Alert: Bio Devices & Pharma M&A Intelligence
Intelligence ID: 2858205

EDITORIAL AND RESEARCH

Tom Cane, Managing Editor Americas, +1 646 378 3187, tom.cane@mergermarket.com
John West, Managing Editor EMEA, +44 (0)20 3741 1207, john.west@mergermarket.com
Patricia Heiberger, Managing Editor Asia-Pacific, +852 2158 9604, patricia.heiberger@mergermarket.com