Thrive Capital Invests $20M in Brazilian Healthcare Startup Pipo Saúde

Pipo Saude Secures $20 Million in Series A Funding

Pipo Saude, a company pioneering a platform for the sale and administration of healthcare benefits to Brazilian businesses, has successfully closed a $20 million Series A funding round.

This investment was spearheaded by Thrive Capital, led by Joshua Kushner, representing the firm’s inaugural leading investment in a Brazilian startup. Thrive Capital has previously invested in companies like Nubank and Loft.

Investment Details and Participants

Atlantico joined the financing as a new investor, alongside existing backers including Monashees, Kaszek, and OneVC. Notable individuals also participated, such as David Velez, co-founder and CEO of Nubank, and Florian Otto, co-founder and CEO of Cedar, and former CEO of Groupon Brazil.

Previously, Pipo Saude secured $4.6 million in seed funding in June 2020, with Monashees and Kaszek leading the round, and participation from OneVC and Velez.

Company Mission and Growth

Founded in July 2019 by Manoela Mitchell (CEO), Thiago Torres (COO), and Vinicius Correa (CTO), Pipo Saude aims to revolutionize the experience of procuring and managing healthcare benefits for corporations.

The company also provides a care navigation platform designed to assist employees. Essentially, Pipo Saude’s core mission is to fundamentally “transform” the healthcare experience for both companies and their workforce.

Pipo Saude initiated sales of its solution within six months of its establishment. Over the last year, the company has experienced approximately a 5x increase in Annual Recurring Revenue (ARR) and a 7.2x expansion in the number of lives managed, according to Mitchell.

Currently, Pipo Saude serves 100 corporate clients, managing benefits for 15,000 individuals. Its clientele includes prominent Brazilian unicorns such as MadeiraMadeira and Buser, as well as Caelum and Funcional Health Tech.

Business Model and Competitive Landscape

Pipo Saude generates revenue through commissions, operating a business model that draws parallels to Nava, Accolade, and Rightway. The company also cites Zenefits and Amino as sources of inspiration and benchmarks.

Initially, in 2019, Pipo Saude focused on demonstrating to potential clients the benefits of digital healthcare in reducing costs and enhancing care quality, as Mitchell explains.

The onset of the COVID-19 pandemic in March 2020 accelerated the adoption of digital healthcare solutions across the board, prompting stakeholders – from physicians to employers and patients – to embrace technologies for increased efficiency and accessibility.

This shift significantly contributed to Pipo Saude’s growth. The company expanded from two corporate clients in January 2020 to approximately 70 by December of the same year.

Impact of Digital Transformation and Future Plans

“COVID-19 expedited the digital transformation of healthcare systems globally, particularly in Brazil, which lagged behind the U.S. in technology adoption within the healthcare sector,” Mitchell stated.

Traditionally, Brazilian companies rely on brokers for healthcare benefits administration. Pipo Saude aims to “disrupt this landscape” through the application of technology and data-driven insights.

The company asserts that member enrollment in healthcare plans typically takes up to 10 business days in Brazil, but Pipo Saude can complete the process in under an hour, leveraging its integrations with HMO/PPOs. The new funding will be allocated to further investment in technology and data, with the goal of launching a new digital product focused entirely on member needs.

Based in São Paulo, Pipo Saude currently employs 108 individuals across 33 cities and three countries, an increase from 27 employees a year ago. The company has adopted a “remote-first” work model during the pandemic.

Pipo Saude intends to utilize the new capital to expand its workforce, aiming to double its full-time employee count by the end of the year. Mitchell characterizes the business model as “asset-light,” connecting healthcare buyers, users, and providers without requiring substantial regulatory capital.

Long-Term Vision

Looking ahead, Mitchell envisions Pipo Saude as a locally focused business, rather than a global one. “A deep understanding of healthcare data and protocols requires specialized knowledge,” she explained, adding that the Brazilian market presents a significant opportunity.

“Our focus is on establishing ourselves as the leading provider in Brazil, rather than pursuing broader, but less in-depth, expertise across multiple markets,” Mitchell emphasized.

Kareem Zaki, a general partner at Thrive, explained that Thrive’s investment was based on Pipo Saude’s innovative approach to connecting healthcare solutions with individuals and families.

“Pipo leverages data to enhance value throughout the customer journey, from informing employer purchasing decisions and automating benefit management to assisting employees in navigating the healthcare system,” Zaki stated. “This results in 20% cost savings, up to 50x faster processing times, and an unprecedented 97% customer satisfaction rate.”

Pipo Saude is not alone in addressing the Brazilian benefits space. Flash, a flexible benefits platform, recently raised $22 million in a Series B round led by Tiger Global Management.