Hims, Roman, Keeps: The State of Telehealth in 2020

Michael Wenner
Feb 21st
The days of needing to physically go to a doctor are quickly becoming a thing of the past. The use of telehealth, which is defined as "the use of electronic information and telecommunication technologies to support long-distance clinical health care," is becoming increasingly popular.

Amidst the popularity of telehealth there are a handful of startups that have taken it upon themselves to capitalize on the trend by offering a direct-to-consumer business model offering monthly prescriptions. Hims, Ro and Keeps have each seen monthly sales increase by at least ten times in the first twelve months following their first sale. Let's take a look at each of them in more detail.

Hims

Hims, founded in 2017, is the largest of the three in terms of sales, while also attracting customers the quickest. The company sells a wide array of products for hair, sex, skin, nutrition and performance anxiety. Following Hims' initial success, the company launched Hers, which sells products geared towards females such as birth control. The company even has a note under prescription products that says "Prescription products require an online consultation with a physician who will determine if a prescription is appropriate."

Hims raised $100 million last January at a pre-money valuation of $1 billion. By doing so in 15 months, Hims became the second-fastest startup to join the unicorn club after Bird. Hims reportedly is seeking to raise another $200 million, saying it has already hit $100 million in revenue while expecting to surpass $250 million in revenue this year. Hims' investor presentation showed the average monthly order is $45 and the company has gross margins of 60%.

Ro (Formerly Roman)

Ro, which was also founded in 2017, (which changed its name from Roman to Ro in 2018) has seen its customers spend more in the first six months than Hims and Keeps. Like Hims, Ro sells many of the same products under various brand names. Roman sells men's products, Rory sells women's products, Zero sells smoking cessation products and soon Ro will offer weight management products under the name Plenity.

Ro hasn't quite hit unicorn status yet, but raised $85 million in Series B funding at a $500 million valuation last year. The funding round brought Ro's total funding to more than $175 million. Investors in Ro include General Catalyst, FirstMark Capital and the chief executives of Casper, Code Academy and Pill Pack.

Keeps

Keeps doesn't have as extensive of a product line as Hims and Ro, but rather is currently focused on the niche of men’s hair loss prevention. After answering a few questions and sending a couple of pictures, Keeps' physicians will recommend which of their hair loss products is best for you.

Keeps' parent company, Thirty Madison, raised $15.25 million in Series A funding in October 2018. Thirty Madison's valuation is not known, but it has raised $22.75 million from investors such as Greycroft, Steadfast Venture Capital, Maveron and Northzone. "It’s an end-to-end platform that is the single best place for guys who are looking to keep their hair," Thirty Madison co-founder Steven Gutentag previously told TechCrunch.

It appears Telehealth is likely to become increasingly prevalent as more people realize the benefits of being able to seek medical help from the comfort of their homes. If the money pouring into these startups is any indication, the space is one to keep an eye on in the years ahead.

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