The pandemic has accelerated the adoption of nearly anything that can be done remotely and telehealth has been one of the immediate beneficiaries. Ro is the digital telehealth company whose digital clinics allow patients to leverage technology for affordable access to common health services. The company presently operates three clinics – Rory (Women’s Health) Roman (Men’s Health), and Zero (Smoking cessation). The company also launched its own online pharmacy that delivers 500+ generic drugs for only $5/month each. With this latest funding, Ro has tripled its valuation from in the last fifteen months since its Series B (this round comes at a $1.5B valuation) and is on pace to do $250M in revenue this year.
AlleyWatch caught up with CEO and Cofounder Zachariah Reitano to learn more about the company’s impressive growth, plans to double the size of its engineering team, and the latest round of funding, which brings the company’s total funding raised to $376M.
Who were your investors and how much did you raise?
Ro raised $200 million in our Series C led by existing investor General Catalyst, with participation from existing investors FirstMark Capital, Torch Capital, SignalFire, TQ Ventures, Initialized Capital, 3L, and BoxGroup, as well as first time investor The Chernin Group.
Tell us about the product or service that Ro offers.
Ro is a patient-driven healthcare company that provides a personalized, end-to-end telehealth experience from online treatment to the delivery of medication to ongoing care. Ro powers three digital health clinics — Roman for men’s health, Rory for women’s health, and Zero for fighting smoking cessation — as well as Ro Pharmacy, an affordable online pharmacy that delivers over 500 generic medications for $5 per month each.
What inspired the start of Ro?
We started Ro because we wanted people to never have to put their lives on hold because they couldn’t get high quality, affordable healthcare. Ultimately, we aspire to be patients’ first call — to either handle everything they need from beginning to end or to guide them throughout their journey when they are better served by others. We see a world in which patients are in complete control of their care and where physicians, nurses, and pharmacists are empowered by, not replaced by technology.
How is Ro different?
We’re the only vertically integrated direct-to-consumer healthcare company in the country. We built our own EMR, our own custom pharmacy operating system and we have seamlessly integrated them to offer an unrivaled experience for both patients and providers. Today, this platform is used by providers throughout the country to treat nearly 20 conditions from weight loss to smoking cessation to dermatology to sexual health. But, it also provides a foundation on which we can constantly launch innovative new products and services designed to rebuild the healthcare experience around a patient’s needs.
In addition to our technology, our business model is unique. We’re exclusively cash pay. Everything we do is in service of our patients. The day we stop adding value to their life is the day we go out of business. Other healthcare companies and institutions are built to bill insurance plans, not built to help patients.
What market does Ro target and how big is it?
Healthcare accounts for 18% of the U.S. GDP. Of course, not all healthcare concerns are best suited for remote care, but we think we are in the middle of a massive paradigm shift to a digital-first mentality where patients will first see if they can receive safe, high quality care, online and then seek in-person care if they are best suited for it.
What’s your business model?
Ro’s mission is to be a patient’s first call for all of their healthcare needs. Our cash-pay model empowers patients to take control of their healthcare. We offer them affordable access to high-quality healthcare via online doctor visits with licensed providers and with treatments delivered right to their doors. Since patients are our only customers, we are held accountable to them and everything we do is focused on addressing their needs. The higher the quality of care, the better the experience, and the more value we deliver, the more patients will come back to us and trust us with their healthcare needs. 
How has COVID-19 impacted the business?
While everyone in the industry would have hoped for a different reason, the pandemic has showcased that now, more than ever, telehealth can serve as a complement to in-person care. Telehealth services like Ro make it easier to connect with patients on the phone, or by video or text, enabling more personal, frequent interactions and more continuous care.
We have seen record sales each consecutive month as more patients are using telehealth for remote care during the pandemic. As people stay at home and practice social distancing, Ro can provide at-home treatment and delivery of medication for other primary or chronic care conditions to meet patients’ needs at this critical time.
What was the funding process like?
We are honored to have the continued support of our existing investors in this round in addition to the new support of The Chernin Group. All of our investors have watched our progress over the past 2.5 years, as well as our record sales for each of the past four months, and decided to double down on their support to help Ro turn our vision of being a patient’s first call into a reality.
What are the biggest challenges that you faced while raising capital?
This round we were fortunate to be supported by existing investors in a quick process. But it wasn’t always this straightforward. When we went out to raise our Series A, 40 out of 43 funds said no. Hearing no is just part of a startup. Just have to find partners who share your vision – here Ro has been incredibly lucky.
What factors about your business led your investors to write the check?
In just 2.5 years, Ro facilitated more than 5 million online healthcare visits. We have at least one patient in almost every county in the United States and Ro has treated patients in 98% of care deserts. During the pandemic, we accelerated the launch of several new treatments and services that could help patients get the care they need from the safety of their homes. In a matter of months, some of these treatments and services saw great leaps in demand. We also successfully launched Ro Pharmacy, a cash pay online pharmacy that offers over 500 generic medications for many of the most common chronic conditions each delivered to patients’ doors for $5 per month.
What are the milestones you plan to achieve in the next six months?
Ro will double the size of our engineering team, hiring close to 70 engineers in the next six months. These hires will help build out Ro’s new Collaborative Care Center and future infrastructure as the company grows and evolves. We are also looking to add mission-driven people in roles across the company in the coming months.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Build your business so that you’re always “default alive.” You never want to be dependent on venture capital to survive, but rather use it to expedite your vision. Get profitable (or default alive) and be in control of your destiny. Profitability is the ultimate leverage.
Build your business so that you’re always “default alive.” You never want to be dependent on venture capital to survive, but rather use it to expedite your vision. Get profitable (or default alive) and be in control of your destiny. Profitability is the ultimate leverage.
Where do you see the company going now over the near term?
This funding will accelerate Ro’s vision of becoming a patient’s first call. We’re going to continue to build out our end-to-end telehealth platform to offer remote patient monitoring, at-home testing, urgent care and to manage chronic diseases. We will also develop more technology designed to give providers “superpowers” that allow them to deliver high-quality care to patients. This will include more enhancements to our custom EMR that enables personalized care for comprehensive, collaborative, and continuous care. Additionally, plan to also integrate additional healthcare providers, such as therapists, nutritionists, lifestyle coaches, social workers, and others, and expand educational resources on Ro’s Health Guide to provide comprehensive, holistic care no matter the patient need.
What’s your favorite outdoor dining restaurant in NYC
Cafe Gitane — where I first told my fiancé, “I love you.” I don’t remember how the food tastes. 🙂
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