Kry Secures $312M Series D Funding - Telehealth Growth

Kry Secures $312M Series D Funding to Expand Telehealth Services

Swedish digital health company Kry, a provider of telehealth services and associated software connecting clinicians and patients for remote consultations, previously raised €140M in a Series C round just prior to the onset of the pandemic in Western Europe, in January 2020.

The company today announced a successful oversubscribed Series D funding round, totaling $312M (€262M). These funds will be allocated to accelerate growth initiatives within the region.

Investment Details

This latest investment round includes participation from both new and existing investors. CPP Investments (the Canadian Pension Plan Investment Board) and Fidelity Management & Research LLC are leading the Series D. Additional investors include The Ontario Teachers’ Pension Plan, alongside European venture capital firms such as Index Ventures, Accel, Creandum, and Project A.

The increased need for social distancing during the coronavirus pandemic significantly boosted the telehealth sector, accelerating the adoption of digital health tools that facilitate remote consultations for both patients and healthcare professionals.

Kry proactively responded by offering a complimentary service enabling doctors to conduct consultations online last year, emphasizing their commitment to providing support during the crisis.

This responsiveness proved beneficial. Kry experienced 100% year-over-year growth in 2020, increasing the number of digital doctor appointments from approximately 1.6 million to over 3 million. Currently, around 6,000 clinicians utilize Kry’s telehealth platform and software solutions. (The company does not disclose registered patient numbers).

Growth and Future Outlook

Despite this growth, co-founder and CEO Johannes Schildt notes that healthcare demand has, in some respects, remained relatively stable over the past year.

While the pandemic generated specific demand related to COVID-19 testing (a service Kry offers in select markets), national lockdowns and general health concerns also reduced typical healthcare utilization. Schildt believes Kry’s 100% growth rate during the pandemic represents only a preview of future expansion as healthcare delivery increasingly transitions to digital platforms.

“The pandemic undoubtedly presented an opportunity, but the underlying trend toward digital healthcare was already established. The pandemic simply accelerated this shift and validated our approach across the globe,” Schildt stated to TechCrunch. “Telemedicine and digital healthcare are now recognized as essential components of future healthcare systems.”

He further explained that overall healthcare usage in many European markets actually decreased due to restrictions, creating a unique situation where telemedicine is growing rapidly while general healthcare demand is at a low point. Kry has been actively recruiting clinicians and developing new tools to support this digital transition.

The free version of Kry’s tools for clinicians proved highly successful, but Schildt is more enthusiastic about the broader changes in service delivery driven by the pandemic’s acceleration of digital health adoption.

Establishing Telemedicine as a Standard

“The most significant development has been the widespread acceptance and integration of telemedicine,” Schildt emphasized. “While the level of maturity varies across European markets, telemedicine is now widely recognized as the future of healthcare.”

He believes that shifting to digital delivery is crucial for improving access to limited healthcare resources in the face of growing demand. Kry’s focus has consistently been on addressing inefficiencies within the healthcare system.

This is achieved through various means, including providing support tools for clinicians in public healthcare systems – with Kry’s tools being used by over 60% of GPs in the UK’s NHS – and operating a full healthcare service in select markets, combining telemedicine with a network of physical clinics. Kry also maintains partnerships with private healthcare providers in Europe.

Kry adopts a flexible approach to healthcare delivery, viewing video consultations as just one component of its telemedicine business, which encompasses remote consultations for a wide range of medical issues, including infections, skin conditions, stomach problems, and psychological disorders. (Not all conditions are suitable for remote treatment, but many primary care visits can be effectively conducted online.)

Future Investments and Expansion

The new funding will support Kry’s product roadmap, which includes expanding its patient-facing app to offer more digitally delivered treatments, such as Internet Cognitive Behavioral Therapy (ICBT) and mental health self-assessment tools. Investments will also be directed toward digital healthcare tools for managing chronic conditions, through both internal development and strategic acquisitions.

Numerous startups are currently digitizing established treatment programs for conditions like insomnia, anxiety, and musculoskeletal issues. Kry is exploring potential partnerships to expand its platform, having already developed ICBT programs in-house.

“As we enter the fourth phase of this significant transformation in healthcare, it’s logical to continue investing in tools that empower clinicians to deliver high-quality care efficiently and enhance the patient experience,” Schildt explained. “We aim to help even more people access the care they need.”

Kry’s services extend beyond video and text-based consultations, encompassing mental health plans, ICBT treatments, and tools for managing chronic conditions. The platform integrates both digital and physical healthcare delivery, with partnerships playing a key role.

“My own experiences as a patient drive much of our work, stemming from frustration with the inefficiencies in the current system,” Schildt added. “There’s a lack of patient focus and access problems in many European markets. Our starting point is always how to improve the experience for patients, which involves building user-friendly tools and empowering clinicians with effective resources.”

Focus on Solving Real Problems

Unlike some companies, Kry avoids overhyping artificial intelligence, despite incorporating machine learning technology into its tools. It also does not offer a diagnostic chatbot, prioritizing the resolution of fundamental inefficiencies in healthcare delivery.

“We utilize AI and machine learning in our products, but I sometimes find it frustrating when companies focus more on the technology itself than on the problem they’re solving,” Schildt stated. “We don’t have the same chatbot system as some competitors. For me, it’s about identifying the core problem for the patient. A chatbot isn’t always the answer.”

He believes that patients often either know their medical issue or require reassurance from a human healthcare professional. He questions the ability of chatbots to provide adequate comfort or accurate assessments in complex situations.

“We do provide decision support for our clinicians, but doctors are generally skilled at making diagnoses. The real inefficiency lies in matching patients with the appropriate level of care,” Schildt explained.

He cited the Swedish healthcare system’s expenditure on translators (€200M) as an example of a significant inefficiency that could be addressed by better matching multilingual clinicians with patients.

Preventative Care and Access

Schildt argues that a key role for digital healthcare tools is to drive a shift toward preventative care, benefiting both patients and healthcare costs. He criticizes healthcare systems that prioritize cost reduction over patient access.

“It’s frustrating when healthcare systems make it difficult for people to access care to save money,” he said. “That’s counterproductive and contributes to rising healthcare costs. We aim to play a crucial role in promoting preventative and proactive care, with access as a key component.”

Kry’s goal is to simplify access to care for patients, directing them to the appropriate level of support.

Geographic Focus

Currently, Kry is primarily focused on the European market, with key operations in Sweden, Norway, France, Germany, and the UK. While it offers video consultations in 30 regional markets, it has no immediate plans for expansion to the United States.

“We are very European focused,” Schildt stated. “While we may consider expanding outside of Europe in the future, our current focus is on Europe, where we have a deep understanding of the markets and regulatory landscape. Europe represents a substantial market opportunity in itself.”