Fast-growing digital health company Hinge Health clinched $400 million in a financing round amid soaring demand for virtual physical therapy services.
The series E funding round more than doubles the company's valuation from January. Hinge Health is now valued at $6.2 billion, up from $3 billion in January when it announced a $300 million series D round.
Existing investors Coatue and Tiger Global led the round. New investors Alkeon and Whale Rock took a $200 million stake through a secondary investment, according to a press release.
Hinge Health reports that its customer base has more than doubled year over year to over 575 enterprise customers as the company keeps pace with growing demand from millions of Americans seeking accessible care for back and joint pain.
“What makes this round special is that it’s led by the people who know us best - our existing investors,” said Daniel Perez, co-founder and CEO of Hinge Health, in a statement. “We’ll use this capital to continue investing in new ways to improve access and outcomes, create exceptional patient experiences, and avoid unnecessary surgeries.”
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Over $1 billion has been invested in Hinge Health, enabling the creation of one of the largest clinical, data science and R&D teams in all of digital health, according to the company.
Scott Shleifer of Tiger Global said Hinge Health has a "relentless focus" on their patients, customers and team, and "it shows in their clinical and economic outcomes."
We believe Hinge Health is a leader in the new digital healthcare frontier,” said Lucas Swisher, partner at Coatue Management. “We are excited by Hinge Health’s vision and achievements and were impressed to see patients speak about their care experience with such delight and passion.”
Hinge Health says it's used by four in five employers and 90% of health plans with a digital MSK solution. The company's solution reduces MSK pain, surgeries and opioid use by pairing advanced wearable sensors and computer vision technology with a comprehensive clinical care team of physical therapists, physicians, and board-certified health coaches.
The company's computer vision and motion sensors aid patients with exercise therapy and motion assessments.
Hinge Health recently acquired medical device maker Enso to expand its musculoskeletal therapy solutions. Enso developed a noninvasive device shown in double-blind clinical trials to reduce pain by 56% and deliver clinically effective relief for 86% of patients without drugs or surgery, according to the company. Enso's device works by delivering a patented electrical stimulation treatment that relaxes the muscles and calms the nerves and is controlled via an app on smartphones.
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Hinge Health has incorporated that technology into its solution to provide a groundbreaking wearable technology for noninvasive and nonaddictive pain relief, according to the company.
Hinge Health’s HingeConnect integrates with more than 750,000 in-person providers and enables real-time interventions for elective MSK surgeries, driving proven medical claims reduction.
The company works with big-name employers and organizations such as Boeing, Land O’Lakes, L.L. Bean, Salesforce, State of New Jersey, US Foods and Verizon.
“At Chico’s FAS, we appreciated that Hinge Health’s Digital MSK Clinic focuses on the entire musculoskeletal (MSK) journey from prevention to post-surgery. Hinge Health’s holistic approach pairs physical therapists with health coaches to engage members, drive lifestyle and behavior changes and help participants stick with the program. As a result, our members, working across retail, warehouse distribution, and customer call centers, cut MSK pain by more than half,” said Erin Lansberry, senior benefits manager at Chico's FAS, in a statement.
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The company also has beefed up its leadership team by hiring Lalith Vadlamannati as chief technology officer and Vincent Lim joins as chief people officer. Vadlamannati spent 13 years at Amazon, most recently as a vice president leading a 1,200-person R&D team. He will grow Hinge Health’s engineering team and lead technical investments in AI, machine learning and motion technologies—including 3D computer vision, according to the company.
Lim held HR leadership roles at Google, Medium and JUUL Labs and will focus on scaling systems and processes as Hinge Health approaches 1,000 employees.
Virtual physical therapy has become a hot market, with investors pouring big cash into MSK startups. Kiai, a digital therapeutics company, raised $75 million in series C funding. Sword Health scored $110 million in six months to fuel its global expansion and to build value-based care models for musculoskeletal care.
In other market moves, Omada Health acquired virtual physical therapy company Physera for a reported $30 million, and telehealth company DarioHealth bought Upright Technologies for $31 million and recently launched its entry into the MSK health space, called Dario Move.
And, Google and ProMedica Health System are partnering with IncludeHealth to launch an MSK operating system that any provider can use to offer integrated virtual physical care for MSK patients.