DarioHealth Secures $21.3 Million in Private Placement to Expand Beyond Diabetes and Hypertension Digital Health Platforms

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on December 20, 2019, U.S. digital health technology company DarioHealth (NASDAQ: DRIO) announced it had secured $21.3 million in private equity financing. SternAegis Ventures participated in this round of financing as the agent for the private placement.

As part of this private financing round, DarioHealth issued a total of 21,375 shares of newly designated preferred stock, at a price of $1,000 per share.

DarioHealth plans to use the proceeds from this funding round to integrate its smartphone-based blood glucose monitoring system into more health plans and to expand its digital therapeutic platforms beyond diabetes and hypertension.

DarioHealth, founded in 2011, is a digital health technology company. The company develops and markets digital medical devices in the United States, Europe, Canada, and Australia, providing consumers with digital healthcare services via smartphones and other mobile terminals.

As early as 2015, DarioHealth’s blood glucose monitoring system received FDA 510(k) clearance. The system is housed in a flash drive comparable in size to a USB thumb drive; by connecting to a smartphone, healthcare providers or patients can monitor the individual’s blood glucose levels in real time via the mobile device.

In 2018, DarioHealth engaged diabetes specialists to join its blood glucose monitoring platform, providing online consultation and answers for patients with diabetes. Currently, more than 40,000 users are active on DarioHealth’s blood glucose monitoring system platform. In addition, DarioHealth has established partnerships with major retailers such as Walmart and Best Buy, aiming to convert consumers into users of its blood glucose monitoring system.

Erez Raphael, CEO of DarioHealth, stated, “We at DarioHealth are helping users better understand how to improve their behavioral and dietary habits based on blood glucose data obtained through our platform, as well as to develop timely and appropriate diabetes treatment plans. We aim to significantly increase the user base for DarioHealth’s blood glucose meters, diabetes monitoring systems, and other digital health products, thereby extending our digital health solutions to more users.”

It is reported that DarioHealth is not the only company offering online blood glucose monitoring services. Livongo Health, another digital health technology company, has developed a diabetes management app that ranks among the most downloaded and highest-rated healthcare applications in the Apple App Store.

Regarding the current landscape of the digital health market, Erez Raphael stated, “This will be a protracted competitive battle, but I believe consumers will choose the products that best suit their needs. We are delighted to have completed this transition financing round, with the amount raised exceeding our initial expectations. Moving forward, we will continue to expand our digital health platform beyond diabetes and hypertension management, and we are confident that we will become the preferred choice for consumers.”

(Compiled by Wang Fang)