Healthcare navigation platform HealthJoy has gained $60 million in collection D funding, elevating greater than $108 million whole, the corporate introduced Thursday.
Chicago-based HealthJoy — which serves primarily employers, as properly brokers and third get together directors — presents a cellular platform that helps join staff to their advantages. It additionally has a concierge group to reply questions when wanted.
The funding spherical was led by Valspring Capital. Different traders of the corporate embody Endeavour Imaginative and prescient, CIBC Innovation Banking and U.S. Enterprise Companions.
Valspring Capital selected to put money into HealthJoy as a result of it fights a serious ache level within the healthcare advantages house: minimal understanding of the accessible advantages for workers, mentioned Aneesha Mehta, co-founder of Valspring Capital.
“We’re thrilled to put money into HealthJoy and speed up their spectacular platform development. As customers of healthcare expertise ourselves, we genuinely recognized with a core problem that HealthJoy fights: a severe lack of advantages consciousness that results in under-utilization by staff,” Mehta mentioned in a information launch. “Providing an answer that simplifies advantages is a key differentiator within the expertise conflict the market presently finds itself in. We sit up for amplifying HealthJoy’s options as we’ve seen the worth they carry firsthand.”
HealthJoy will use the financing for continued development, mentioned Justin Holland, CEO and co-founder of the corporate. Moreover, it should work to advance and innovate its expertise choices, he added.
“Our focus is profitability with this financing spherical and that’s going to come back by development and continued funding and innovation,” Holland mentioned in an interview. “So we’ll proceed to develop in mainly all of our groups, however we all know the place we’re going to get essentially the most leverage is inside our innovation stack. [We’re going to] maintain making certain that our expertise group is properly outfitted to maintain tackling this extremely difficult drawback.”
A merger or acquisition isn’t one thing HealthJoy is contemplating proper now, Holland mentioned. Nevertheless, he didn’t present extra element concerning the firm’s exit technique.
“If we’re lucky sufficient sooner or later the place it is sensible for that, we may have that be a brand new problem we sort out,” he mentioned. “However at present, that’s not on our thoughts.”
The corporate’s app begins with a chatbot referred to as JOY, which may reply questions and direct them to specialists if wanted. The app consists of providers like medical consultations, help to find native suppliers and medical invoice critiques.
“At present, HR and the dealer have mainly constructed their very own digital community of providers … The problem is engagement into these merchandise and that’s an enormous burden for HR and the dealer to really ship on the technique throughout these,” Holland mentioned. “That’s the place we actually see what HealthJoy’s job is. How will we make delivering on the well being plan technique as a complete simpler for HR and the dealer?”
When based in 2014, the platform was initially meant for shoppers, however switched to employers in 2016. It now serves greater than 1,000 corporations, together with LendingTree, Bustle and Vivint.
Different corporations within the healthcare navigation house embody Accolade, Quantum Well being and Alight.