Pomelo Care raises $46 million series B - with demonstrated impact on maternal and newborn health outcomes
The virtual medical practice now covers over 3 million lives
A virtual medical practice that improves maternal and newborn health outcomes, has announced $46 million in Series B financing led by existing investors First Round Capital and Andreessen Horowitz (a16z) Bio + Health.
Pomelo Care will use the funding to accelerate its partnerships with payors across the United States to address the root causes of the maternal health crisis.
The urgent need to address the maternal health crisis - and the challenge of doing so
There is an urgent need to address the maternal health crisis in the US.
1 in 10 babies born in the US today start their life in a neonatal intensive care unit, according to March of Dimes. US maternal morbidity and mortality rates are higher than peer countries, and the disparities in outcomes for people of colour are stark.
Healthcare access continues to worsen, with 1 in 8 births occurring in U.S. counties with limited-to-no access to maternal care. Due to significant gaps in postpartum care, about half of pregnancy-related deaths in the US occur after hospital discharge.
And while the does evidence exist for how to identify people at highest risk for complications and which interventions are most effective, existing data gaps and provider capacity challenges make it extremely difficult to apply these interventions at scale.
The Pomelo care model
Pomelo Care was founded in 2021 by Marta Bralic Kerns. Pomelo has developed a care model that addresses the challenges of intervention at scale by analysing claims and health record data to proactively identify individual risk factors.
It provides virtual pregnancy, postpartum, and infant care to patients nationwide to reduce those risks, dramatically increasing access to high-quality, evidence-based care and improving outcomes.
Josh Kopelman, Partner at First Round Capital and Pomelo board member said:
"It's rare to come across an opportunity where the incentives between patient, provider and payor are all aligned,"
"Marta and the Pomelo team have found an incredible opportunity to dramatically improve outcomes for the highest risk populations, while helping payors reduce their avoidable costs."
Pomelo has achieved significant milestones this year including:
$46 million in financing: The company today (20 June 2024) announced $46 million in Series B financing, bringing total funding to $79 million. The Series B was led by existing investors First Round Capital and a16z. Stripes joined this round along with additional participation from existing investors SV Angel, Operator Partners and BoxGroup. They join angels and healthcare industry leaders Adam Boehler, Founder and Managing Partner of Rubicon Founders, Former Director of the Center for Medicare and Medicaid Innovation (CMMI), and Founder of Landmark Health and Puneet Singh, CEO of CareBridge.
Covering over 3 million lives: Since the beginning of 2024, Pomelo has grown its covered lives with health plan partners from 2 million to over 3 million, providing care to patients in 46 states.
Published peer-reviewed data proving improvement in clinical outcomes: Pomelo presented new research at the 2024 ACOG Clinical & Scientific Meeting showing that Pomelo's telemedicine care dramatically scales critical interventions that reduce the leading causes of maternal morbidity and mortality in a Medicaid population – hypertensive disorders like preeclampsia and mental health conditions. Pomelo's care model increased rates of evidence-based aspirin prophylaxis by 2.4x, proven to reduce preeclampsia risk by 25%, and mental health screening rates by 7x, proven to reduce perinatal depression risk by 40%. This autumn, Pomelo will present data at both the Society for Maternal-Fetal Medicine Global Congress and the American Academy of Pediatrics National Conference & Exhibition showing reductions in avoidable emergency room, inpatient, and NICU utilization as a result of Pomelo's care.
Marta Bralic Kerns, Founder & CEO of Pomelo Care said:
"We've long known what works to reduce maternal and infant complications. The questions have always been: can you identify the patients who are at highest risk, can you deeply engage them in care to drive uptake of the prevention strategies we know work, and can you do it in the highest risk populations with the most limited access to care?".
"This data demonstrates that we absolutely can. And with this additional funding, we'll have the opportunity to scale our care model to more pregnant people across the country."
Vineeta Agarwala, MD, PhD, General Partner at a16z Bio + Health and Pomelo board member said:
"Pomelo is one among a small set of health tech companies that have earned true scale".
"This scale is evident in our partnerships with major Medicaid and commercial plans covering over 3 million lives, which create the opportunity to collaborate with OB providers, labor and delivery wards, and NICUs nationwide, while serving hundreds of thousands of expecting mothers and newborns with high quality, technology-enabled care."