Less than a year after acquiring Modern Fertility, Ro has swiped another reproductive health company to expand its fertility offerings.
The company is introducing at-home sperm testing to its platform with the acquisition of Dadi, a fertility company offering sperm testing, analysis and storage kits.
Those kits will be rebranded under the Ro name as part of the deal. Patients who send their kits into Ro’s partner lab for testing can expect a personalized report in two days.
The deal hits at Ro’s original mission of tackling sexual health concerns. Nearly five years after the company was founded to treat erectile dysfunction, the digital health unicorn is now the only direct-to-consumer player with at-home fertility services for both men and women, according to the company.
“Fertility support has long been complex and reactive, making it difficult for people to play an active role in their health journey. Dadi completely reimagined the sperm testing, analysis and storage experience, making these services more accessible, convenient and affordable,” said Zachariah Reitano, Ro’s co-founder and CEO, in a statement. “Now, Ro will bring this patient-centric experience to more people through Ro Sperm Kit and, in the future, create the most comprehensive direct-to-patient fertility products and services in the country for both individuals and couples.”
The sperm kits, Dadi’s proprietary technology, are designed with extra security to protect samples from extreme temperatures, drops and potential tampering. Ro will sell the rebranded kits starting at $199 each.
Patients will soon have access to the sperm kits through the company's men’s digital health clinic, Roman, as well as women’s health unit Modern Fertility.
Ro acquired Modern Fertility in May 2021 in a hefty $225 million deal.
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An estimated 9% of men and 11% of women have experienced fertility problems, with one-third of infertility cases caused by male reproductive issues.
“Like Ro, Dadi got its start by helping people navigate stigmatized sexual health issues. We set out to grant everyone the opportunity to proactively address their fertility questions or needs,” said Tom Smith, founder and general manager of Dadi. “With our proprietary sperm collection and storage kit and technology, we’ve been able to offer the most trusted, easiest and fastest way to test and store one’s sperm for future fertility options. And, now, together with Ro and Modern Fertility, we have the opportunity to redefine the fertility experience for any individual or couple.”
Fertility-centered startups raked in big bucks last year. Carrot Fertility banked a $75 million series C round in August, and AI-powered insurance platform InsurMedix closed a $65 million round in November to cover fertility treatments.
Ro clinched one of 2021’s biggest digital health raises, grabbing $500 million in a March series D round.
Just last month, the company’s valuation reportedly hit $7 billion after snagging $150 million in a February inside round.
The digital health unicorn has broadened its reach into several new areas in the past year, most recently launching a virtual skincare clinic.
The company also offers virtual mental health services, an online pharmacy and at-home diagnostic testing. Ro plans to make all of its offerings available on a unified online and mobile platform later this year.