elder tech company, papa, raises $60m led by tiger global
Papa Secures $60 Million in Series C Funding
Papa, a technology company specializing in care and companionship for seniors, has announced a $60 million Series C funding round. This investment was spearheaded by Tiger Global Management, increasing the company’s total funding to $91 million.
Accelerated Growth and Expansion
The newly acquired capital will be strategically allocated to fuel the company’s expansion throughout the current year. This follows a period of substantial growth, with Papa reporting a 600% increase year-over-year as of early 2021, according to a company statement.
Origins and Core Service
Founded in 2017 by Andrew Parker, the company initially launched as a direct-to-consumer service. Seniors could register and be paired with a college student – a “Papa Pal” – who would provide assistance with a variety of tasks.
These tasks ranged from accompanying seniors to medical appointments and providing household help to offering technical support and simply providing companionship.
Transition to a Benefit-Driven Model
The initial plan involved a six-month data collection and feedback phase, followed by outreach to insurance companies. Papa has since established partnerships with 80 insurance providers, making its services available nationwide as a member benefit.
Furthermore, employers are also able to offer Papa as an employee benefit. While direct sign-ups are still possible, the service is now primarily accessed through insurance coverage.
Platform Usage and Future Growth
Parker revealed to TechCrunch that the platform currently has approximately 1 million eligible members, with around 15% utilizing Papa’s services each month.
The company anticipates this number to rise to between 5 and 6 million members by January 2022.
Improving Health Outcomes and Combating Loneliness
Parker emphasized the company’s demonstrated ability to positively impact the lives and health outcomes of older adults and their families.
A key focus is reducing loneliness and social isolation among seniors, a challenge that was significantly amplified by the recent pandemic. In response, Papa expanded its offerings to include virtual services.
Expanding Service Offerings: Papa Health
The company has broadened its core services to encompass Papa Health, a comprehensive suite of benefits.
This includes care navigation, virtual primary care, and chronic care management, all accessible through the Papa platform. Services are now also available to families through Medicaid Managed Care.
Parker illustrated this by noting that a Papa Pal could assist a single mother seeking employment.
A Personal Inspiration
The genesis of Papa stemmed from a personal experience within the Parker family.
Parker explained that he initially created the service to support his grandfather, who had recently immigrated from Argentina and required assistance with daily tasks and companionship, but did not need intensive medical care.
He initially advertised for assistance on Facebook, asking for someone to be a “pal” to his grandfather.
Evolving Pal Requirements
Initially, the company focused on recruiting college students, but now considers applicants aged 18-45. Parker stressed that the selection process is rigorous, with an acceptance rate of less than 10%.
The company receives approximately 20,000 applications each month from individuals eager to become Papa Pals.
The Core of the Service: Connection and Support
Parker stated that the primary role of a Papa Pal is to provide a sense of connection and support, conveying a message of care and availability.
He highlighted the nuanced nature of the lives of older adults, noting that 50% consider themselves to be experiencing loneliness.