Recent studies support the “food as medicine” concept, demonstrating how targeted nutrition can enhance health and wellness. Poor dietary habits are now directly linked to increased mortality from conditions like Type 2 diabetes, stroke, and heart disease. In response, healthcare providers are increasingly using food-based interventions to prevent, manage, and treat diet-related illnesses. RxDiet exemplifies this approach by offering personalized meal plans designed to address chronic conditions such as hypertension and diabetes. The platform combines AI-powered meal delivery using fresh ingredients with behavioral support. This dual focus aims to improve both treatment outcomes and patient adherence. The results are promising: RxDiet users experience an average 3.36% reduction in HbA1c levels after six months, while 87% report better medication adherence. By partnering with health plans to offer this service to members, RxDiet helps insurers improve patient outcomes and reduce costs.
AlleyWatch caught up with RxDiet CEO Roman Kalista to learn more about the business, the company’s strategic plans, latest round of funding, which brings the company’s total funding raised to $4.6M, and much, much more…
Who were your investors and how much did you raise?
We raised $3M in Seed funding from Giant Ventures, Better Ventures, Form Life, and Immad Akhund (Mercury Bank).
Tell us about the product or service that RxDiet offers.
RxDiet uses AI to create medically tailored food plans, with fresh ingredients and behavioral support, and deliver them directly to patients with chronic illnesses like diabetes and hypertension. RxDiet partners directly with Health Insurance.
What inspired the start of RxDiet?
RxDiet was inspired by the staggering number of adults globally grappling with overweight, hypertension, and diabetes. These chronic conditions not only impact individuals’ quality of life but also impose a significant burden on healthcare systems. We recognized the urgent need for a transformative approach that extends beyond medication, focusing on diet and lifestyle modifications to address these pressing health challenges
How is RxDiet different?
- RxDiet serves some of the largest health insurers in the industry like Aetna.
- The platform leverages AI to personalize meal plans based on individual medical needs and taste preferences, offering a cost-effective alternative to existing programs that reduces wastage.
- In a 6 month period, We see 3.36% HbA1c Reduction; 87% of members reported improvement in medication adherence; 75% of members reported a reduction in ER and Hospital visits.
What market does RxDiet target and how big is it?
All the population in the U.S. that has health insurance. TAM is $23.356B per year.
What’s your business model?
First, we partner with health payers to provide meal plans, groceries and health coaching to their eligible members. We generate revenue through a fee-for-service arrangement with the payer.
Second, we offer a digital health product accessible to a broader market. Clients subscribe to this service on a per-member-per-month (PMPM) basis.
How are you preparing for a potential economic slowdown?
Our business model, centered on preventative healthcare and cost-effective solutions, aligns strongly with the increasing focus on value-based care. We are continuously optimizing our operations to improve efficiency and reduce costs without compromising program quality. This includes leveraging technology to streamline processes and exploring opportunities for cost-saving partnerships.
In addition, by delivering exceptional member experiences and demonstrating tangible health improvements, we are building a loyal client base. High member satisfaction is crucial for sustaining revenue during economic downturns.
What was the funding process like?
Although we just announced our round, we raised the money in July 2023. The fundraising environment was rough, investors were holding back and it took a lot of conversations and ultimately finding high-conviction investors who were willing to roll up their sleeves and learn about our novel business model.
What are the biggest challenges that you faced while raising capital?
The public tech stocks crashed right before we started raising and investors were holding back. We were also raising with signed contracts, but no revenue. It takes someone who understands the value of these contracts to make the bet.
But the situation has changed since we now generate well over 6 figures a month and the capital market is loosening up again.
What factors about your business led your investors to write the check?
Our investors were drawn to RxDiet’s potential for significant impact in the healthcare industry. The combined expertise of our founding team in healthcare, technology, and nutrition forms a powerful foundation for our business. Our deep understanding of these domains enables us to develop data-driven solutions that address critical challenges in food as medicine and personalized nutrition.
Our pilot program’s exceptional results, including a 3.36% HbA1c reduction, improved medication adherence by 87%, and a substantial decrease in ER and hospital visits, demonstrate the effectiveness of our approach. The high NPS score of 97 further validates our members’ satisfaction and the program’s impact.
What are the milestones you plan to achieve in the next six months?
Launch our digital offering with select partners.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Prioritize efficiency and lean operations. Focus on maximizing your existing resources by streamlining processes, reducing costs, and generating revenue with minimal investment. Prove the viability of your concept on a smaller scale before scaling up.
Where do you see the company going now over the near term?
With the funds we raised, RxDiet aims to expand the team, strengthen the grocery network, and offer services to a wider range of healthcare payers.
What’s your favorite summer destination in and around the city?
Fire Island.
