Silicon Valley backs telehealth startup Eucalyptus in $30 million series B

Sydney telehealth startup Eucalyptus has raised A$30 million in a series B round led by California investor NewView Capital.

NewView founder and managing partner Ravi Viswanathan will join the board.

Existing investors Blackbird Ventures and W23, the Woolworths VC fund, also hit the transfer funds button, with AirTree Ventures signing on for the first time.

Tim Doyle, Benny Kleist, Alexey Mitko and Charlie Gearside founded the telehealth platform in 2019. The venture previously raised an $8 million series in May 2020.

It has four key demographic-focused brands: Pilot (men’s health), Kin (fertility), Software (prescription skincare) and Normal (sexual wellness) and services more than 200,000 patients.

The company plans to use the funds to build out the platform’s behavioral health and chronic care modules to develop brands in weight management, diabetes, and mental health. Eucalyptus is now Australia’s largest digital health provider with a focus on behavioral health.

The core platform behind the brands, offers a rapidly scalable infrastructure of high-quality healthcare providers, alongside patient data, remote monitoring tools, and partnerships with pathology labs and pharmacies with the aim of delivering a higher touch and quality relationship with patients at lower costs.

Founder Tim Doyle said they were excited to have NewView, which has invested in other healthtech startups, on board.

“We wanted a partner who believed a global healthcare company could originate from Australia, who had the experience to help us get there, and were willing to roll up their sleeves to help us advance the business. We believe we’ve got that with NewView,” he said.

While COVID-19 has caused some challenges for the business when it comes to supply lines over the past 18 months, there’s also been an upside, with Doyle telling Startup Daily on ausbiz that sex toy brand Normal is up 5x month-on-month amid rolling lockdowns

“It’s one of the fastest growing brands we’ve had. It’s directly tied to lockdown activity for sure,” he said.

NewView Capital’s Christina Fa said: “As Australia’s tech ecosystem grows, it’s great to see more and more talent moving from professional services to building the next generation of fast-growing tech companies, we were immediately impressed by the high-quality team Eucalyptus has built and believe the company is well positioned to become a global leader in digital care.”