US-based XP Health, which modernises vision care with a digital-first vision care platform, has snapped $33.2 million in Series B funding. It was led by global fintech VC firm QED Investors, which invested in Nubank, Klarna, ClearScore and many others, with other prominent investors, including Canvas Ventures, American Family Ventures, HC9 Ventures, Valor Capital Group, and Manchester Story. With this round, the total funding raised by the company accounts for over $55 million.
Funds utilisation
The company intends to use the funds to continue expanding its product offering and increase its focus on Generative AI products that will improve the member experience and continue to reduce typical friction points in vision care, such as reducing the time it takes for appointment scheduling and enhancing the digital shopping experience. It will also deploy the funding to continue expanding its sales and marketing efforts, further empowering employers and distribution partners nationwide.
“Vision care is an indispensable provision for employee wellbeing, and we are excited to partner with XP Health on building a category leader,” said Victoria Zuo, of QED Investors. “Employees are tired of overpaying for out of pocket costs for vision care. With XP Health, they can now dramatically decrease that expense while enjoying a far superior user experience and product.”
Vision care made more affordable, accessible
Vision care is often confusing and expensive, and deals with frustrating experiences are common with vision insurance. Founded by Antonio Moraes and James Wong in 2018, XP Health was founded to make vision care more accessible, affordable, and enjoyable by simplifying the experience of vision insurance and care.
The digital-first vision platform focused on eye exams and eyewear that uses customer-centric design and technology to create a better member experience and improve access. It ensures double coverage and reduces costs.
What does the company do?
XP Health is revolutionising the experience of eyecare across eye exams and eyewear shipping, through a digital product that enhances customer satisfaction through personalised care and reduces out-of-pocket costs. The platform is designed to be inclusive, offering services to all members, including those who do not require prescription eyewear. This extends to online prescription renewals and the option for in-person eye exams.
Even members with proper vision can access various eyewear options like sunglasses, blue light glasses and reading glasses, many of which are not covered by traditional vision benefits providers.
Its vision programmes cover more than 250,000 people and have seen rapid growth in the last two years since launching its platform, expanding from 30 to over 3000 business customers, including DocuSign, Navistar, Chegg, Sequoia Consulting, and strategic partners like The Guardian Life Insurance Company of America.
“We’re proud to raise a substantial round with great terms, despite the tough funding environment, which demonstrates our continued growth and a strong demand from employers and benefit partners for a modern vision care solution,” said Antonio Moraes, CEO and co-founder of XP Health. “With this new investment, we’ll strengthen our competitive advantage by focusing on a best-in-class customer experience that includes reducing traditional employee vision costs by as much as 69 percent and expanding our production capacity to eventually serve 10 million members.”
