Digital-first healthcare provider Tend this morning announced it has successfully raised $15M through a closed capital funding round, providing funding to drive growth and further transform New Zealand’s primary healthcare system.
Tend Founder and Co-CEO Cecilia Robinson says the $15M of new capital allows Tend to focus strongly on innovation and expansion in the new year, including acquiring other GP practices, hiring more clinical staff and integrating pharmacy services into the business.
“All current shareholders and directors participated in the closed capital round,” says Robinson. “We’re also delighted to be welcoming Infratil’s CEO Marko Bogoievski, who is joining Tend as a director and shareholder,” says Robinson.
“Since launching in October, Tend has received interest from a number of parties who were interested in helping us grow but it was the interest from Marko that really stood out,” says Robinson.
“From our very first conversation, it was clear Marko shared our vision for healthcare and our desire to help Kiwis be the healthiest people in the world. This, alongside his significant commercial experience, means he is a perfect fit for the business.
Bogoievski says that he has always had an interest in the health sector and was impressed by the innovative approach Tend was bringing to the health sector.
“Tend are challenging the status quo and giving New Zealanders greater control over managing their own healthcare. I’ve been incredibly impressed by the calibre of the team and their vision of making a difference to deliver quality health outcomes,” says Bogoievski.
Robinson says following the capital raise, Tend will be recruiting a Head of Mergers & Acquisitions to identify and work alongside potential acquisition candidates and has also engaged Deloitte to provide specialist assistance as the company embarks on the next phase of growth through 2021.
“To complement our digital consultation service, we will be looking to acquire selected GP practices and expand our physical footprint. There are increasing numbers of GPs looking to sell their businesses and retire during the coming decade,” says Robinson.
“We are facing a looming GP crisis in New Zealand unless we do something different. The average age of a GP is 53 and, with younger doctors increasingly reluctant or unable to buy into a practice, we believe Tend can provide a pathway for practice owners looking at succession planning.
“Through our world-leading digital technology, GPs have the option of selling their practice to Tend yet continuing to care for their patients by working with Tend in a flexible working capacity.
“Since launching only three months ago, the Tend app has been downloaded thousands of times and has maintained a customer satisfaction score above 97% (from the 70 percent of patients who rated their appointment experience with Tend in-app),” says Robinson.
“These satisfaction levels are unheard of in the health sector with Tend successfully resolving over 90 percent of patient concerns virtually.”
The closed capital raise followed Tend’s announcement of its partnership with nib insurance at the end of November, which will see eligible nib members offered unlimited access to Tend’s GPs.