Lottie, a London-based digital elderly care platform, has secured £6.1M at a valuation of £45M in a round led by General Catalyst, US venture capital firms, and a former Airbnb backer.
How will the funding be used?
The latest capital injection is an extension of a £2.5M seed round which initially closed in January 2022, led by early-stage venture capital firm Kindred. The latest capital brings the company’s total funding to £9M.
With the new funding, Lottie is set to expand nationally, adding new care partners and bringing its marketplace and software tools to more businesses and people around the UK.
The company will be developing operational tools to help care homes and retirement operators improve their day-to-day servicing of residents.
Part of the proceeds will go towards bolstering the team of specialist care advisers that can handle the whole care home search process, from research facilities, discussing care facilities, negotiating residency fees, and overseeing the legal process.
Chris Bischoff, leader of healthcare investment for General Catalyst, will join Lottie’s board as part of the investment.
Fellow co-founder Chris Donnelly says: “After closing with Kindred in January, we experienced unprecedented demand from funds. The first few months of 2022 have been hugely successful for us, so we decided to bring General Catalyst on by extending the seed round to support our industry growth further.”
Elderly care is booming
The news comes as demand for elderly care services continues to boom. The value of the global elderly care market is expected to reach $2.4 trillion (£2 trillion) by 2029, according to market research from Data Bridge.
Chris Donnelly and his healthcare expert brother founded Lottie in July 2021 after being disgruntled by their own experience of finding a care home for their grandfather.
Lottie is a free digital healthcare marketplace helping families minimise the time, stress, and cost of finding quality care homes.
The care homes listed on the platform are handpicked and have been vetted by Lottie’s team of care experts based on their care quality, home culture, and ethical practices.
As per the company’s claims, customers and enquiry numbers were up 115% in the three months to the end of June, compared with the previous three-month period between December 2021 and March 2022.
Lottie’s co-founder Will Donnelly says, “Lottie’s operational technology is already being used by hundreds of the UK’s most forward-thinking later living providers, which has been fundamental in allowing an improved customer experience, but also delivering better health outcomes for residents, and, in the long-term, will help deliver a sustainable industry which can meet the care needs of our rapidly aging population.”
Alongside care homes, the company has recently expanded into Retirement Living, giving retirees specialist support and expertise in finding alternative housing options for those who want to maintain their independence in later life.
“Today, elderly care is characterised by a broken care seeker experience, constrained supply of high quality, affordable homes, and an increasingly challenging operating environment. Lottie is this unique matchmaker, comparison website, and care property specialist hybrid. Blending smart technology with a dedicated team of care experts, the platform is proving to be an indispensable ally in helping families and retirees make easy, informed choices about elderly care,” says Chris Bischoff, Managing Director at General Catalyst.
