Midnight Health, an online prescription startup based in Brisbane, has raised $15 million in a Series B, with the ASX-listed insurer raising the money for the third time in 19 months to own more than three-quarters of the company.
nib’s investment comes as regulators crack down on the industry, forcing medtech companies to switch from online requests for prescriptions to a phone or video consultation with a doctor before a script is released. The changes will take effect from September.
Midnight Health previously raised $12 million in a Series A funded by nib (ASX:NHF) in August last year. That raise valued the health solutions brand builder at $48 million. nib has chipped in an initial investment of $4 million in November 2021. The insurer has also made an additional commitment $9 million in additional funding for Series B in FY2024 if the startup meets a set of performance goals. Nib has tipped $40 million and will receive a 77% stake in Midnight Health.
Midnight Health offers 27 home delivery products across three brands, from the morning after pill to thrush, sleep problems, erectile dysfunction, blood pressure, smoking, weight and hair loss, and skin conditions.
Rival telehealth brand startup Eucalyptus recently raised $50 million from the likes of Woolies, Mary Meeker & Blackbird at a $520 million valuation.
The new capital will be used to help expand the business, including scaling, further developing IT and service platforms.
Midnight Health was founded in late 2020 by Nic Blair and Matt Anderso and launched in February 2021.
From a customer base of more than 30,000 people in August last year, Blair said they served more than 85,000 Australians with electronic scripts as well as home delivery from pharmacies Over 100,000 doctor consultations since launch.
“This latest investment will enable us to accelerate growth, develop new services and bring our innovative care solutions to more patients across Australia as we work to change the way care is delivered,” he said.
“Midnight Health brings equality to people in health care, whether they live in the bush or in a major capital city.”
nib director, Mark Fitzgibbon told the company building an ecosystem of technologies and assets, such as Midnight Health, to allow people to personalize their healthcare needs through the insurer.
“It’s an exciting and important undertaking, especially when you consider the fragmentation of healthcare,” he said.
“nib views Midnight Health’s product and service offerings as key elements in its vision to become as much of a health management company as we are a leading health insurer.”
The insurer also has interests in health data company Honeysuckle and gut testing medtech Microba, both of which have a partnership with Midnight Health.