Tyto Care Secures $9 Million Series C Funding to Expand into China's Telehealth Market

VCBeat (WeChat ID: vebeat) has learned that Tyto Care, a medical device manufacturer and telehealth company headquartered in Netanya, Israel, secured $9 million in Series C financing on January 16, 2019. Led by Ping An Global Voyager Fund, this round of funding will help promote Tyto Care’s products in Eurasia, particularly in the Chinese market.

Previously, Tyto Care raised $1.5 million in seed funding in 2012 and $7 million in Series A financing in 2014. In July 2015, the company completed a $12.1 million Series B round, which helped it secure FDA clearance and gain partial market share.

Unlike other companies that provide telemedicine services through online platforms, Tyto Care has developed a handheld device called Tyto along with a companion app. Resembling a smartwatch in appearance, the Tyto device integrates multiple functionalities, including a camera, thermometer, otoscope, stethoscope, and tongue depressor. Users first contact a physician via video call using the Tyto app and then perform examinations with the Tyto device under the doctor’s guidance. After the examination, the user’s specific biometric data is transmitted to the physician, who will prescribe medication based on the actual clinical findings.

Tyto Care Official Website's Product Usage Guide Page

Although Tyto Care’s approach of integrating virtual care with dedicated devices sets it apart in the industry, its market presence in the United States still lags behind that of established telehealth players such as American Well, Doctor on Demand, Teladoc, MDLive, and HealthTap.

“Tyto Care CEO and Co-Founder Dedi Gilad stated in a press release: ‘The new funding not only validates the value of telemedicine in the digital age but also propels our unique solution onto the global stage, enabling us to deliver optimal on-demand remote care services to consumers worldwide.’”

Tyto Care will next expand into the Eurasian market, with China becoming its key focus.

“Tyto Care’s mission is to deliver high-quality medical care in the comfort of patients’ homes, a value proposition that is particularly critical in the Chinese market. We believe telemedicine will significantly improve the lives of Chinese consumers, whether they are parents of sick children, elderly patients managing chronic conditions, or citizens residing in remote areas,” said the Chairman of Shenzhen Capital Group, Tyto Care’s partner, in a statement. “We are honored to partner with Tyto Care and look forward to its expansion into other Asian markets.”

Ping An Global Voyager Fund is a new investment vehicle established by Ping An Group in 2017, aimed at investing in fintech and healthtech businesses outside China to accelerate Ping An’s digital transformation. The CEO of Ping An Global Voyager Fund is Jonathan Larsen (Luo Zhongheng), former President of Citi’s Global Retail Bank. He successfully led Citibank’s digital transformation and brings extensive expertise in digitalization.

Ping An Global Voyager Fund made its initial investment in the European fintech company 10x Future Technologies last September, and completed the Series B financing round for Airdoc, a leading Chinese AI enterprise in the healthcare sector, on January 10, 2019.