Omada Health achieves 'unicorn' status with Fidelity investment

Omada Health raised $192 million in a Series E venture funding round led by Fidelity Management & Research, boosting the chronic care startup's valuation to $1 billion, the company announced Wednesday.

Omada Health will invest the money in hiring, developing its integration capabilities and growing Omada Insights Lab, its data science platform for identifying preventive care and intervention opportunities among its 18 million users. Investors aMoon, Perceptive Advisors, and Wellington Management and Civilization Ventures also contributed funding.

The company is preparing to go public, which could happen later this year, CEO Sean Duffy said. "The markets right now are a little bumpy," he said. "One wouldn't want to go public if you have the ability to hang tight and watch what happens."

The Series E round brings Omada Health's total funding to $454 million and comes on the heels of record growth for the startup, which provides virtual care to patients with chronic conditions including diabetes, hypertension and musculoskeletal conditions.

The startup's more than 1,700 employer, health plan and health system customers generally pay a monthly fee for disease management and remote patient monitoring services. Omada Health added 3.5 million users in 2021, and contracts for digital care management of multiple conditions accounted for 32% of new business, the company said. Of the 18 million individuals who are eligible to use the platform, 550,000 people have actually signed up, Duffy said.

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The company gained an advantage near the end of the year when Cigna's Evernorth subsidiary designated it as a preferred provider on its Digital Health Formulary, giving Evernorth's 100 million members easy access to Omada Health services.

The company's escalating valuation is a manifestation of record-breaking investment in health technology startups last year. Venture capitalists pumped $30.2 billion into such companies in 2021, more than double the $14.8 billion invested the prior year, according to Modern Healthcare's Digital Health Business & Technology.