Flo Health, a UK-based femtech company, has raised over $200 million in a landmark Series C funding round led solely by US growth investor General Atlantic. This significant investment marks Flo Health as Europe’s first femtech unicorn, elevating the company’s total funding to over $290 million.
The Series C round, one of the largest ever for a femtech company, matches the previous record held by US fertility startup Prelude Fertility, according to data platform Dealroom. The newly acquired funds will propel Flo Health’s expansion into new user segments such as perimenopause and menopause, and further their investment in R&D for AI-driven personalized insights tools.
Regulatory Approvals Pending
Flo Health's co-founder and CEO, Dmitry Gurski, confirmed that all funds have been committed and a stock purchase agreement has been signed. The funding round is anticipated to close in the coming weeks, pending regulatory approvals.
“This milestone underscores Flo’s significant growth and the potential within the femtech industry,” Gurski said. Despite recent market challenges, Flo Health has demonstrated robust growth, achieving $112 million in revenue in 2023, up from $35 million in 2022, and reducing losses from $35 million to $25 million over the same period.
Future Plans and Growth Strategy
Flo Health intends to allocate a portion of the new capital to enhance its R&D efforts, specifically by investing in top-tier talent across its global offices in Europe and North America. While Gurski did not disclose specific IPO plans, he noted that the funding broadens the company’s strategic options, allowing flexibility in choosing the best path forward for continued success and impact in the women's health space.
“Our immediate focus remains on executing our growth strategy and solidifying our position as a leader in femtech,” Gurski added.
Flo Health’s Market Position
Founded in 2015, Flo Health has grown into the most-downloaded women’s health app on Google Play and the App Store, as reported by market insights platform Sensor Tower. The app enables users to track their menstrual cycles, monitor symptoms, and access personalized health insights and educational content. As of June 2024, Flo boasts 70 million monthly active users and nearly 5 million paid subscribers, with about half based in the US and the rest evenly split between the UK and EU.
Sector Challenges and Achievements
Femtech has historically been underfunded, with European startups raising just $191 million in 2023, a small fraction of the $9.7 billion invested in the broader healthtech sector. The wider digital health sector, which includes most femtech companies, has also faced funding challenges due to the economic downturn.
Despite these hurdles, Flo Health’s substantial raise in 2024 signals positive momentum within the sector. Other notable femtech raises this year include Swedish digital birth control startup Natural Cycles, which secured $55 million in May. However, not all companies have fared as well; Clue announced layoffs at the start of 2023, and audio erotica site Emjoy shut down earlier this year.
Flo Health’s landmark funding round and subsequent unicorn status reflect a significant achievement for the femtech industry, highlighting the growing recognition and potential of women's health technology.
Originally published on Flo