UK in-home healthcare provider Cera raises $150M to expand its AI platform
In the wake of challenges faced by public healthcare systems globally, Cera, an in-home healthcare provider in the UK, has secured $150 million in funding to expand its AI-driven platform. This funding, comprised mainly of debt, aims to address the increasing demands of the aging population in Western countries, particularly in the UK, where the National Health Service (NHS) often struggles.
Investment Details and Goals
The funding round was led by BDT & MSD Partners and Schroders Capital. Cera's platform leverages proprietary AI modeling to optimize its services. Although Cera uses aspects of technologies from Google's Gemini AI and Microsoft's ChatGPT, it mainly relies on its own data-driven models.
Previously, in 2022, Cera raised $320 million, with the funds split equally between equity and debt. The company's twelve investors include prominent names like Earlymarket, Guinness Ventures, and U.K. investor Robin Klein. A spokesperson for Cera mentioned that the company became EBITA-positive in 2023 and free-cashflow positive by 2024, indicating its financial health.
Cera's AI Advancements
Cera's CEO, Dr. Ben Maruthappu, stated, "We are getting to profitability, plus we have very significant scale in how we're using technology and AI, and we've expanded into more services in the home."
By using an app, Cera's carers can effectively plan their work and monitor patient symptoms. This AI-driven system analyzes unstructured data, predicting potential health risks for patients. The company has claimed significant results, including a reduction in hospitalizations by up to 70% and a 20% decrease in patient falls, with hospital discharges happening five times faster.
Expansion and Market Position
So far, Cera has raised more than $407 million, a mix of equity and debt. Its main competitors in the UK include Home Instead and Bluebird Care, while in the US, Signify Health and CVS Health operate in a similar space. Cera's comprehensive service offerings now extend to nursing, physiotherapy, and mental health services, among others.
Dr. Maruthappu added that Cera’s AI allows them to foresee and prevent approximately 83% of hospitalizations before they occur, further aiding the NHS by freeing up capacity for other patients.
Proven Benefits and Future Plans
A report from UK consultancy Faculty highlighted Cera's potential savings of £1 million daily for the UK healthcare system. The company claims to support over 30 million people, working with over 150 local governments and multiple NHS Integrated Care Systems across the UK.
Rob Platek of BDT & MSD commented, "Cera has achieved strong growth through a demonstrated ability to leverage technology to deliver exceptional care."
Cera is conscious of distancing itself from the pitfalls that befell other healthcare tech startups like Babylon Health, which collapsed due to over-reliance on chatbots. By focusing heavily on AI-driven home healthcare, Cera aims to continue its trajectory of growth and technological integration.
Cera's trajectory positions it as the UK's largest non-NHS healthcare provider, with a robust infrastructure that promises to further innovate and alleviate pressures on public healthcare systems.