NewView Capital Invests in Eucalyptus Telehealth

Eucalyptus Secures $22.3 Million in Series B Funding

A new round of investment totaling $22.3 million (Series B) has been secured by telehealth provider Eucalyptus, intended to facilitate the development of a comprehensive digital health portfolio focused on primary care within Australia.

Investment Details

NewView Capital spearheaded the funding round, with contributions from current investors Blackbird Ventures and W23, alongside new investor AirTree Ventures. Ravi Viswanathan, founder and managing partner at NewView, will join Eucalyptus’s board of directors as a result of this investment.

Company Growth and History

Since its inception in 2019 by Tim Doyle, Benny Kleist, Alexey Mitko, and Charlie Gearside, the Sydney-based company has now raised a cumulative $32.8 million.

Australia’s Healthcare Landscape

Australia operates a two-payer healthcare system, primarily funded by the government, supplemented by individual private insurance coverage. Eucalyptus positions itself as a direct-to-consumer, private-pay alternative. Copays for care through Eucalyptus can, in certain instances, be lower than the typical $25 charged for a standard doctor’s visit, as stated by Doyle to TechCrunch.

A Vertically Integrated Platform

Eucalyptus is described as the “largest vertically integrated telehealth platform in Australia,” currently serving over 200,000 patients. This is achieved through four distinct brands, each targeting specific demographics: contraception and fertility, skincare, men’s health, and sexual wellness.

Each brand maintains its own dedicated team of healthcare providers.
A centralized patient data repository is utilized.
Remote monitoring tools are integrated into the service.
Strategic partnerships with pathology labs and pharmacies are established.

Focus on Patient Care

Doyle emphasizes that this integrated approach fosters a more meaningful and higher-quality doctor-patient relationship.

Expanding Healthcare Access

The company aims to reduce the time elapsed between the identification of a health issue and a definitive diagnosis. Future expansion plans include a greater focus on chronic conditions such as diabetes, heart disease, and mental health. Doyle notes that patient attrition rates are high in these areas due to insufficient and inconvenient access to care.

Future Development and Expansion

The newly acquired funding will also be used to support product development and solidify Eucalyptus’s position within the telehealth industry. The company intends to launch new brands within the next year, concentrating on chronic care areas like behavioral health, weight management, and diabetes.

Significant Growth Trajectory

Eucalyptus experienced more than a threefold increase in growth last year and anticipates similar expansion this year. This mirrors the broader trend of substantial venture capital investment within the digital health sector, particularly in 2020. The company also plans to increase its workforce from 80 to approximately 100 employees by year-end.

Partnership with NewView

Doyle expressed enthusiasm regarding the collaboration with NewView, particularly with Viswanathan and principal Christina Fa, who believes Eucalyptus demonstrates Australia’s potential to become a leader in digital healthcare.

Unique Market Position

Fa highlighted Eucalyptus’s impressive vision and execution, specifically its successful recruitment of brand managers. She noted the company’s unique position in Australia, where it has had to independently build its infrastructure – unlike competitors who benefit from established platforms like Teladoc. The curation of a network of healthcare providers and the development of four distinct brands, each with a unique identity, allows for complete vertical integration and control over the customer experience.