Omada Health Valued at $1 Billion-Plus in Fidelity-Led Round

(Bloomberg) -- Omada Health, a digital health firm that helps with chronic conditions, has reached a valuation of more than $1 billion after a funding round led by Fidelity Management & Research Co., according to the company’s chief executive officer.

The San Francisco-based company raised $192 million in a series E round from new investors including Fidelity and Israel-based venture firm aMoon, as well as existing investors including Perceptive Advisors, Wellington Management and Civilization Ventures, according to a statement reviewed by Bloomberg News.

Founded in 2011, Omada Health provides virtual care for people with chronic conditions like diabetes, hypertension and musculoskeletal issues. Patients typically access Omada’s services through their employer or health insurer, which pay monthly fees for access to virtual care workers and devices such as a continuous glucose monitor and blood pressure cuff. 

“These are care areas where because of the nature of the diseases -- the difficulty of treating them in the current visit-by-visit ecosystem -- it felt like a digital- and virtual-first approach was required,” Omada Health co-founder and CEO Sean Duffy said in an interview. 

Omada, which says it has more than 1,700 customers and 550,000 members, plans to use the funding to hire more employees and invest in research and development. The company is also announcing the appointments of Nancy Vitale as chief people officer and Sunil Kayiti as chief technology officer.

Duffy said Omada plans to stay independent for now but he hopes to take the company public once equity markets stabilize. Especially given the current state of the public markets, Omada plans to be prudent and not rush into a listing, he said.

“I tell the company that our job here is to make sure that when we make that flip to public it doesn’t feel like we’re doing anything differently,” he said.

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