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Insurer nib (ASX: NHF) has tipped another $15 million into online healthcare solutions provider Midnight Health, while committing a further $9 million in FY24 if certain performance benchmarks are met for the Brisbane-based startup.
Founded in 2021 by Nic Blair and Matt Anderson, Midnight Health has built a stable of brands focused on services ranging from medication delivery to remote prescriptions to tailored gut health microbiome supplements.
After securing a 50 per cent stake in Midnight Health in November 2021, nib has been progressively increasing its share in the company. If the Series B reaches its target of $24 million, nib will have invested a total of $40 million into Midnight Health to secure a 77 per cent stake.
"This latest investment will allow us to accelerate growth, develop new services and bring our innovative healthcare solutions to more patients across Australia as we work to change the way care is delivered," says Midnight Health co-founder and CEO Nic Blair.
"We’re really proud that we reach a large number of people who live in remote regions across Australia and don’t always have access to a GP," says Blair, who alongside Anderson won the Australian Young Entrepreneur Award - Startup in 2022 and featured in this year's Australia's Top 100 Young Entrepreneurs list.
"Midnight Health brings equity to people around healthcare, whether they live in the bush or a big capital city."
The Series B funds will be used to help the business expand and build scale, while further developing its IT and service platforms. Midnight Health's brands are hub.health, women's health platform Youly, men's health brand Stagger, and Vidality, a gut health joint venture with Microba Life Sciences (ASX: MAP).
Youly was the first company in Australia to deliver same-day emergency contraceptives to patients' homes, and it also provides consultations and scripts for more than 2,000 medications, also including menopause, thrush, and skincare treatments. In addition, the business provides advice for women on many areas of healthcare, including the treatment of sexually transmitted diseases.
Stagger, for men, offers treatments for sleep issues, sexual dysfunction, smoking, vaping, skin conditions and a range of other everyday health problems.
Hub.health offers an Australia-based medical team that can diagnose and prescribe treatments, write online scripts and provide medical certificates via email. Medication and over-the-counter products are delivered straight to a patient’s door. It also provides pre-pregnancy and new baby packs.
"nib views the range of Midnight Health products and services as key elements in its vision to become as much a health management company as we are a leading health insurer," says nib managing director Mark Fitzgibbon.
"We are gradually building an ecosystem of technologies and assets, such as Midnight Health, which enable people to personalise and seamlessly meet their healthcare needs through nib.
"It’s an exciting and important endeavour, especially when you consider the fragmentation within healthcare."
Midnight Health has demonstrated traction, momentum and strong revenue growth. Revenue growth for the 12 months to April 2023 was up 320 per cent, and since inception the startup has serviced more than 85,000 customers.
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