NEW YORK , February 11, 2021 / PRNewswire / – Zocdoc, the country’s leading digital marketplace for healthcare, announced today $ 150 million in growth financing from Francisco Partners, a leading global investment firm specializing in working with technology companies. This follows a significant year for the company, one marked by a successful transition to a profitable, variable revenue model that has resulted in accelerated growth. Zocdoc grew pre-pandemic sales by more than 35% year-over-year and saw year-over-year growth in 2020 despite the disruption from COVID-19. Today, Zocdoc is profitable and well on its way to accelerating its pre-pandemic growth trajectory. The company will use the capital to continue its rapid growth, deepen its investments in sales and marketing, and expand the products available through its platform.
Zocdoc has long been a leader in making medical appointments online. However, when the pandemic dramatically accelerated the adoption of telemedicine, Zocdoc quickly adjusted its marketplace. The company successfully expanded into telemedicine, making it a rare digital health platform that supports hybrid care: both physical and virtual care services. By aggregating millions of face-to-face and video visit appointments across a nationwide network of providers, Zocdoc is clearly positioned to become the door to healthcare.
Most recently, the company used its core technology and 13 years of health planning experience to introduce Zocdoc vaccine planner. This new service is designed to help cities, states, and healthcare providers centralize and streamline vaccinations. The company is offering this new solution for free to accelerate public health efforts. Zocdoc Vaccine Scheduler has already been taken over by that City of Chicago and health systems across the country to enable faster vaccinations.
“Today, Zocdoc is the rarest type of private technology company: we’re profitable with accelerated growth, and we’re a business that is really good for the world,” said Oliver Kharraz, MD, Founder and CEO of Zocdoc. “The past year has shown that Zocdoc is about to transform healthcare in this country. From our rapid expansion into telemedicine to our efforts to help cities and health systems distribute vaccines, our work continues to focus on energizing patients. I’ve never been so proud of the Zocdoc team or more excited about our future. “
“Zocdoc is a remarkable company that is well positioned to be the one stop shop for consumers for all of their health needs and we are proud to work with them to fund their next chapter,” said Scott Eisenberg, Head of Credit and Structured Solutions at Francisco Partners. “We were incredibly impressed with the speed of Zocdoc’s innovation and growth, as well as the invaluable contributions the company made to improving the American healthcare system – including supporting patient needs during the COVID-19 pandemic.”
The success of the company’s recent initiatives, as well as its accelerated growth and profitability, are based on Zocdoc’s variable pricing model. The transition from a flat subscription model to the current fee-per-booking model, which began in 2018 and has now largely been completed, has enabled the company to lower the entry barrier for providers and to dramatically accelerate the growth of providers on its platform. The company has expanded its network of healthcare providers by 50 percent in the first states that migrated to its new model, and other states are following a similar path.
This new model has also enabled Zocdoc to make deep and sustained investments in product, technology and marketing that have helped drive its expansion into the Telemedicine, Vaccination planning, and national Television advertising. The company has quickly grown to become one of the largest telemedicine platforms in the country, with more than 10,000 providers offering nearly a million video visit appointments in 100 subject areas. In addition, the telemedicine approach from Zocdoc adapts to patient preferencesso they can select doctors nearby – even for virtual visits – so they can build relationships with local doctors should they choose to have personal treatment.
Zocdoc is the leading digital healthcare marketplace for personal or virtual care. Every month, millions of patients use our free service via Zocdoc.com or the Zocdoc app to find doctors in the network, book personal or virtual appointments immediately, read reviews from verified patients, receive reminders of upcoming appointments and checkups, and more. With a mission to empower the patient, Zocdoc’s platform provides the accessible and simple experience that patients expect and deserve.
About Francisco Partner
Francisco Partners is a leading global investment firm specializing in partnering with technology and technology-driven companies. Since its inception over 20 years ago, Francisco Partners has invested in more than 300 technology companies, making it one of the most active and long-standing investors in the technology industry. With more than $ 25 billion In terms of assets under management, the company invests in opportunities where its deep industry knowledge and operational expertise can help companies achieve their full potential. For more information on Francisco Partners, see www.franciscopartners.com.