Carrot banks $75M to expand fertility benefits to more employers, health plans

Carrot Fertility, a fertility benefits provider, has raised $75 million in series C funding led by investment firm Tiger Global Management.  

The San Francisco-based platform, which was featured in Fierce Healthcare’s Fierce 15 of 2021, is available in more than 55 countries and has clients like Peloton, Box, Slack and Eventbrite. The latest round brings its total funding to $115 million to date. 

The funding round was also backed by OrbiMed, F-Prime, CRV, U.S. Venture Partners and Silicon Valley Bank. Carrot Fertility plans to use the new capital to focus on its product offerings for health plans and U.S. multinational employers. It comes less than a year since the last series B round. 

Carrot aims to fill gaps in current health insurance coverage and can be a boon for employee retention.

“Democratizing access to fertility healthcare for employers in a way that is flexible, customizable and global is at the core of our mission,” said Tammy Sun, CEO and co-founder of Carrot, in a statement. “We’re thriled to welcome our new financial partners on this journey as we double down on products that serve employers and health plans in ways that reduces overspending, improves the member experience and helps them build world-class teams in a competitive talent war.” 

RELATED: Ro will acquire women's health startup Modern Fertility in $225M deal

The company’s revenue has grown five times in the last two years, Forbes reported, though specific numbers were not disclosed. 

During the pandemic, the company launched a new telehealth program, Carrot at Home, and is aiming to expand its support by offering additional languages to reach more employees of multinational companies around the world.  Members can connect with more than 2,000 reproductive endocrinologists, urologists, adoption experts, mental health experts, OB-GYNs, doulas and midwives. 

“Carrot's differentiated technology along with its robust, high-quality provider network has democratized access for employers who face rapidly growing demand for fertility coverage from their employees,” said Jay Chen, an investor at Tiger Global Management, in a press release, noting Carrot’s commitment to cost savings, flexibility and inclusivity. 

Though the pandemic has led to a falling birth rate in the U.S., fertility coverage has begun to improve among employers in recent years. Sun had previously said in a statement that the pandemic has increased the urgency of making these services accessible, flexible and customizable.

RELATED: Labcorp moves deeper into 'femtech' with deal for digital pregnancy platform provider Ovia Health

There's a crop of startups disrupting traditional fertility services for employers.  Digital health company Ro recently acquired Modern Fertility to add reproductive health to its growing platform. The deal was valued north of $225 million.

Modern Fertility launched in 2017 offering at-home fertility tests for women.

Clinical testing giant Labcorp picked up Ovia Health, developer of a digital platform for tracking pregnancies and coaching new parents through infancy. The acquisition marks a new step in Labcorp’s commercial push into the burgeoning “femtech” space, after a strategic venture investment in Ovia and its women’s health programs last year. 

New York-based Progyny, a company that manages fertility benefits for employees at large firms, is the first fertility benefits management company to go public. The company brought in $345 million in revenue in 2020, a 50% increase as compared to the $230 million reported in 2019.

The company's revenue skyrocketed by 99% to reach $129 million in the second quarter of 2021, compared to $65 million reported in the second quarter of 2020, as employees increasingly turn to fertility medical services despite the ongoing COVID-19 pandemic.