Direct-to-consumer telehealth company Hims & Hers is looking to go global with its new acquisition of British personalized health company Honest Health for an undisclosed sum.
Founded in 2018, Honest Health specializes in providing hair-loss-related products to customers and currently has an exclusive relationship set up with a U.K. compounding pharmacy and fulfillment center. Like Hims & Hers, it operates via a virtual clinic called Freshman.
Similar to its purchaser, Honest Health lets clients fill out an online consultation. A medical team will then review and prescribe a treatment plan. Patients qualifying for medication get a package in the mail and will receive a refill on a monthly basis.
According to the company’s website, Honest Health has a prescription skincare platform in the works.
WHY IT MATTERS
Hair loss isn’t a new topic area for Hims & Hers, which got its start in the male wellness and sexual health space in the U.S. However, this new acquisition signals that Hims & Hers is looking to expand beyond the US market and into the UK and Western Europe. As of today, the company is available across 50 states in the U.S. and Washington.
“Honest Health has demonstrated a powerful combination of leadership, passion and innovation in digital health– at scale – that will further elevate our ability to provide the Hims & Hers personalized healthcare experience to a new segment of consumers in the United Kingdom,” Andrew Dudum, CEO and cofounder of Hims & Hers, said in a statement.
“Adding Honest Heath to our family not only perfectly aligns with our mission but also unlocks new category and geographic opportunities to even further accelerate growth. We are thrilled to have the Honest Health team join the Hims & Hers family.”
THE LARGER TREND
Hims & Hers launched in 2017 with a focus on men’s health. In 2018 the company expanded its services to include women’s health with a range of products including hair, skin and sexual health services. Over time its services have expanded beyond personal wellness to mental health care and even COVID-19 testing.
After reaching a $1 billion valuation the company began to explore exit options. In October of 2020, the company officially entered the public market via a special purpose acquisition company (SPAC) merger with Oaktree Capital Management.
Before hitting the public markets, Hims & Hers announced a partnership with Alto, a same-day medication deliveries service.
Hims & Hers’ rival company Ro recently closed a $500 million investment round topping off its fundraising at $876 million. Ro has also been exploring the M&A space. In May the company announced that it purchased reproductive health company Modern Fertility for an undisclosed sum.