WhiteCoat sets sights on regional health passport; seeks fresh US$25 million in funding

DIGITAL health provider WhiteCoat Holdings is preparing to raise US$25 million in Series B funding to finance its regional expansion in Indonesia, Vietnam and Malaysia, taking a leaf from its success in Singapore.

The company yesterday marked the official opening of its regional corporate headquarters at One-North in Singapore, where it has taken up 8,000 square feet of space. The homegrown business will mark yet another milestone this year when it expects to turn profitable, after a trebling of revenues to over S$10 million in 2022.

Bryan Koh, WhiteCoat Holdings founder and chief executive, said the company has seen 12 successive quarters of growth in revenues. This year, the company aims to double revenues from 2022 “with higher contributions from the new regional markets”.

WhiteCoat’s vision is to create a regional healthcare passport by harnessing technology to enable cross-border consultations via a single app, with access to medical records as well.

Koh said: “We have laid the foundation for this in the past four years, and have aggressive growth plans... As a user, regardless of the country you are in within Asia, you will be able to tap healthcare practitioners across the region through our platform, and have ready access to all your medical records and documents at your fingertips.”

WhiteCoat began operations in 2018 as part of the Ministry of Health’s regulatory sandbox for telemedicine. Its growth was helped by a pivot towards a B2B model, partnering insurers and corporates.

In 2019, a partnership with AIA gave it access to over one million members. Covid-19 also raised its profile, as more patients turned to digital consults. The Singapore business has expanded beyond acute care into chronic disease management and specialist care, such as paediatrics and services for mental wellness.

WhiteCoat works with over 3,500 corporates, servicing over 1.5 million people across Asia. In 2022, it completed over 400,000 consultations and medication deliveries. In Singapore, it boasts a 200-strong doctor network. Headcount has grown from just 20 to 120, including regional staff.

Regional expansion is expected to take a leaf from its strategy in Singapore via partnerships with payers and other institutions, as well as specialist consults for paediatrics, among others. It has rolled out services to date in Indonesia and Vietnam for digital consults with local doctors, and second-opinion consults with Singapore doctors.

It aims to expand into Malaysia and Thailand this year. Koh said the company does not intend to grow via mergers and acquisitions of similar telemedicine companies, nor does it aim to expand through physical healthcare locations: “We’ve seen tremendous growth over that past four years, and will continue to grow sustainably and focus on profitability. The latter has always been our goal from day one; we have never believed in a growth-at-all-cost strategy, preferring to focus on quality and sustainable growth.

“We see the need to move quickly and expand in multiple markets concurrently. So, I do think it’s very timely now that we’re going out to market to raise that next round to fund that expansion... We see ourselves as that ecosystem aggregator connecting all the dots with the various healthcare and ancillary-related healthcare service providers.”

WhiteCoat raised over US$10 million in Series A funding in 2021. The investment was made by GEC-KIP Technology and Innovation fund, co-managed by Korea Investment Partners and Singapore-based Golden Equator Ventures.

For this latest round of fundraising, Koh expressed confidence despite the challenges raised by a higher interest rate environment. It aims for strategic partners who can help its regional expansion.

“Definitely, I think the (fundraising) environment is very different now. Around 18 months ago, there was dry powder and people actively deploying funds. Now, there is still dry powder on the table. But in terms of deployment, a lot are choosing to wait and see. But winners will continue to be backed.”

He also noted the valuation adjustments: “Questions that are typically asked in mid-to-late stages are being brought forward – things like scrutiny into your economics, your margins, quality of revenue, and path towards profitability. Investors are now looking at growth-stage tech companies.”

At the office launch, Desmond Lee, Minister for National Development and Minister-in-charge of Social Services Integration, cited WhiteCoat’s role in helping to pivot towards digital healthcare during the pandemic. It was one of the telemedicine providers under the Home Recovery Programme.

He lauded the company’s provision of a digital experience for patients, “all the while adhering to the stringent clinical and security standards set out under the sandbox”.