Cluj-based Telios Care, one of the leading providers of telemedicine services in Romania, raised a new financing worth €700,000, having Fortech, a local software company, as lead investor. With an investment of €400,000, Fortech becomes the largest investor in Telios Care, with a 9% stake.
With this new financing round, current investors also increased their stakes, investing €180,000 in Telios Care. At the same time, the company managed to raise another €120,000 from new investors.
This round also marks the official launch of Fortech Investments, the investment division of Fortech Group, which will manage the company’s investment, acquisition, and partnership strategy.
“At Fortech, we’ve been great supporters of the development and disruption of the healthcare industry through our software development services. Contributing to Telios’ mission through funding is a natural next step we are taking towards a deeper involvement into the products that shape the world. Telemedicine is an important field for healthcare innovation, especially in Romania and CEE. As we followed the evolution of Telios, we believe now is the moment to partner up and support their growth, especially when looking at the team Philip has built and their plan to break ground in this up-and-coming field”, says Valentin Filip, Managing Director Product Investments, Fortech.
“Transforming healthcare takes a diverse team with a common goal. From the beginning, Telios Care has strived to bring whole-person care to every Romanian in the comfort of their own environment. We are helping people resolve their healthcare needs with confidence and simplicity. Helping us reach this goal has been the support of our investors, which has grown in size and strategic assistance. Now, with the help of one of the leading technology companies in Cluj, Fortech; through their investment division, Fortech Investments, Telios Care now strives toward the next steps of simplifying healthcare delivery in the CEE region. Partnerships developed with Transylvania Angels Network, Growceanu, and Tech Angels are what makes this Fortech collaboration so special for us; people taking care of other people”, says Philip Choban, CEO Telios Care.
Telios Care is currently a stock structure composed of both founders and investors, including investors from Transylvania Angels Network, Growceanu Angel Investment and Tech Angels, the three organizations being actively involved in raising the new funding and in supporting the healthcare industry and the digitization process.
“Transylvania Angels Network was glad to support Telios in this round from the beginning and in the last year, with two T.A.N. members also being founding investors at Telios. B2B telemedicine is an area with solid potential in Eastern Europe, as proven in other markets. The pandemic gave a boost to it as people see much better its value and benefits. We appreciate the solid growth in usage and clients, the maturity of the management team, and the future perspectives for partnering and expansion. Thus, it was a simple decision to contribute again to this round, as it became one of the biggest angel-led rounds in Romania”, says Mircea Vădan, Founding Board Member and Investor, Transylvania Angels Network.
From the new position, Fortech will be an active member of the Advisory Board, both in terms of business and technical areas, taking part in the development strategy of Telios in the next period.
Following the new funding, Telios Care will accelerate the development plans, both in Romania and in the region. The company aims to improve patient access to quality medical services by introducing faster medical devices on the market, adding new services on the platform that even offers the possibility of home visits, and by increasing the number of complex conditions treated through telemedicine.
For the current year, Telios Care expects a 100% increase in the use of its services as more patients turn to telemedicine as the first option in many cases.
Telios Care saw a 10-fold increase last year in the number of users of telemedicine services, with more than 100,000 beneficiaries across the country. For 2021, the company estimates a doubling in the number of patients by including Telios services in insurance products and medical subscriptions and direct sales to companies.
Following this new investment, Telios Care is valued at approximately €6.3 million.
Founded in 2017, Telios Care is currently in the third round of funding. The first of them took place in 2018 and provided funding of €150,000, money used to develop the platform, improve the software and systems used. The second round of financing ended at the end of 2020, after raising €200,000, an investment that also ensured the launch, for the first time in the Romanian health system, of the American model of “prescription fulfillment” – digital prescriptions sent by doctors, following all safety protocols, directly to the pharmacies indicated by patients.