Ro Is In Talks To Procure At-Home Sperm Storage Startup Dadi

Ro Is In Talks To Procure At-Home Sperm Storage Startup Dadi

Ro, a $5 billion direct-to-consumer health firm, is close to a deal to buy at-home sperm storage startup Dadi, according to numerous individuals familiar with the unicorn’s operations. Along with Workpath, Kit, and Modern Fertility, this would be Ro’s fourth purchase in the last 12 months. The agreement is close to being finalised, but it might yet fall through.

The size of the contract is unknown, although one source estimates that it will be worth $100 million. Ro and Dadi did not react to a request for comment right away. According to co-founder and CEO Tom Smith, Dadi began in 2019 with a temperature-controlled at-home fertility test and sperm gathering package designed to teach guys that “infertility isn’t women’s issue, it’s both a men’s and women’s issue.”

According to Crunchbase, the business has subsequently secured $10 million from investors such as first-minute Capital, Third Kind Venture Capital, and The Chernin Group.

Legacy, Dadi’s closest competitor, has secured startup financing for a sperm-testing and freezing business as well. Legacy won TechCrunch’s Startup Battlefield competition at Disrupt Berlin 2018 and has since secured more than $20 million from investors including FirstMark, Y Combinator, and Justin Bieber.

Reef Finance Changes its name to Reef As It Commences Development Of EVM-Compatible Blockchain

Current and former Ro workers say the healthcare firm has struggled to keep up with the expectations of new growth-stage ambitions, prompting the purchase. Many employees, some of whom have already left the firm, stated the tipping point for them came when Ro focused on fast acquisitions for expansion rather than addressing the company’s culture and processes for long-standing teams.

The pace of acquisitions “seems like it came out of nowhere,” according to a recently departed staffer quoted by TechCrunch. “We’ve never truly integrated with any of our acquired firms, so why are we doing this?” Because of these acquisitions, the firm’s focus would alter dramatically, and officials would declare, “This is a growing company, that’s what happens.” However, when it comes to strategy, two of Ro’s most recent purchases appear to be a good fit for Dadi.

The kit is an at-home diagnostics firm with a variety of customised devices ranging from finger-prick blood testing to weight assessment gadgets, which Ro bought in June.

Similar to Dadi, the firm hopes to make it simpler for people to take control of their health from the comfort of their own homes. About the Kit purchase, Zachariah Reitano, co-founder and CEO of Ro, stated, “There’s a fragmentation of care, a fragmentation of data, and providers aren’t kept in the loop.”

“And we still have a lot of work to do,” says Kit, “but Kit is such a crucial and necessary component in that infrastructure to put more and more of a patient’s care under one roof again.” Dadi will also support Ro’s ostensible efforts to enter the reproduction market, as seen by its $225 million purchase of Modern Fertility. Modern Fertility, led by Carly Leahy and Afton Vechery, provides women with an at-home fertility test as well as a variety of specialised reproductive health services.

And, of course, Ro began as a men’s health company that specialised in erectile dysfunction. The health tech unicorn’s ED line continues to provide half of its revenue.

Ro Is In Talks To Procure At-Home Sperm Storage Startup Dadi
One thought on “Ro Is In Talks To Procure At-Home Sperm Storage Startup Dadi”

Leave a Reply

Your email address will not be published.