Bavarian digital healthcare platform Wellster has closed its Series B round with an additional $20 million funding extension. The additional flow of capital arises just six months after an initial $40 million injection, and will be used to launch a FemTech platform. To date, the platform has erected $61.7 million.
Founded in 2018, Wellster is amongst a growing group of Munich-based telemedicine services, that, of course, all claim to be the “the leading provider”. Where the firm hopes to stand apart in its tailored drug-based and digital therapy treatments is not through innovation, but by replication. Specifically, a business model that’s worked in the US, with the firm pointing to the January $1.6 billion valuation IPO of Hims & Hers, and Roman, which is looking at a valuation of a stiff $5 billion.
In addition to mental health and medical self-tests, the company has launched a sister brand, Spring, which serves as a platform for ED pills at gospring.de. According to a company spokesperson, "medical professionals make a diagnosis from afar (through an online appointment). The medication is either sent to one of the partner pharmacies or directly to the patient at home." Complementing things, Wellster also offers services to combat hair loss at myspring.com, which, the firm claims is “the most effective treatment in the world.”
Seeking to diversify their offer, a portion of Wellster's new funding will be used to establish a femtech platform, that will, “offer treatments for a range of intimate and lifestyle health concerns.”
“With our ambition to become the European market leader in health tech, we plan to use this latest funding round to launch our femtech platform,” commented Wellster co-founder Dr. Manuel Nothelfer. “We believe that our strong existing customer base, European roots, and experience with EU regulations, provide us with a significant advantage over businesses looking to enter the market from overseas.”
Wellster’s Series B extension funding was provided by Claret Capital and Mangrove Capital Partners who now join previous investors including Dermapharm, HV Capital, and SevenVentures.
“Given its sheer size, the potential for value creation in the healthcare sector is second to none,” commented Mangrove’s Hans-Juergen Schmitz. “What makes Wellster particularly attractive is the combination of a compelling direct-to-consumer health proposition and the very strong team with the ambition to disrupt the huge European health market. Both are great fits with our investment thesis.”
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