Direct-to-consumer health company Ro is rumored to be in talks to acquire at-home sperm storage startup Dadi, according to recent reporting from TechCrunch.
Ro, which was valued at $5b when it raised a $500m Series D in March, is reportedly pursuing a $100m transaction for the men’s fertility startup, a healthy multiple for a seed-stage company (no pun intended) with $10m in total funding.
- Dadi provides an at-home fertility test / sperm collection kit, designed to encourage men to become more aware of their reproductive health and contribute to family planning conversations. The company allows men to go from testing to sample storage without stepping foot in a clinic, an approach that could improve the patient experience for a stigmatized issue.
- Ro has roots in male health, focusing on erectile dysfunction products that still account for half of the company’s revenue. The search for growth beyond its flagship product has led to three acquisitions over the past year, including Workpath (at-home health software), Kit (at-home diagnostic tools), and Modern Fertility (female fertility).
- While the home-care theme is apparent in the Dadi rumors and Ro’s overall strategy, TechCrunch reports that the rapid pursuit of acquired revenue is leading Ro employees to feel like many of the moves “came out of nowhere” with little integration into the company’s broader business.
Industry Impact
For Ro to overcome its growing pains, it’s aiming to create a more cohesive at-home care platform through acquisitions aligned with that goal, making the Dadi rumors seem more probable than not.
Ro is one of the most valuable privately-owned health tech startups, a title many suspect will change to “publicly-owned health tech startup” through an IPO in the not-too-distant future.
It’s closest competitor, Hims & Hers, recently unveiled a new mobile app to serve as a unified hub for the brand’s telehealth offerings and treatments, and Ro’s fast-paced acquisitions are seemingly positioning the company to pursue a similar long-term care model as it prepares to go public.
