Digital health firm Babylon has secured a sustainability-linked investment of up to $200 million (€173M) from the strategic capital investment firm, Albacore Capital Group.
Together with already committed PIPE capital of $230 million (€199M) from institutional and strategic investors, Babylon will now have access to around $775 million (€671M) of capital (before fees).
In June Babylon announced plans to go public through a $4.2 billion (€3.6bn) merger with special purpose acquisition company (SPAC) Alkuri Global Acquisition Corp. This will provide up to $575 million (€498M) in gross proceeds to Babylon, including $230 million (€199M) private placement from investors such as AMF Pensionsförsäkring and Palantir Technologies.
AlbaCore has improved the investment, subject only to completion of the merger transaction, which is expected shortly after the shareholder meeting on 20 October.
Once the merger is closed, the new company will become Babylon Holdings Limited and will be listed on the New York Stock Exchange under the ticker symbol BBLN.
WHAT IT DOES
Babylon provides integrated, personalised healthcare through its digital-first platform combined with virtual clinical appointments.
Founded in 2013, Babylon started as a digital symptom-triage checker before launching its NHS-backed service GP at Hand, service which includes digital triage, online video visits and in-person care centres.
In 2020, the company launched its triage chatbot service in the US and Babylon’s Rwanda-focused virtual care subsidiary Babyl inked a 10-year partnership with the country’s government to make digital health consultations available to everyone over 12.
WHAT IT’S FOR
Babylon says the deal will provide more guaranteed capital to fund the continued expansion of its business operations and membership base.
Earlier this year, Babylon sold off its operations in Canada to former partner Telus Health in a licensing deal estimated to be worth roughly $70 million (€60.6M).
Meanwhile, in the UK, NHS digital triaging service eConsult recently closed a new funding round of £7 million to expand into urgent and specialist care.
ON THE RECORD
Charlie Steel, Babylon’s chief financial officer, said: “I am delighted that AlbaCore, with its steadfast focus on environmental, social and governance (ESG) engagement, is investing in Babylon. ESG is central to Babylon’s mission which is to make quality healthcare accessible and affordable for every person on Earth. Whether we are delivering world class health care to the under-served populations of rural America and Rwanda, or committing to Tech Zero to reduce carbon emissions, as a team we are constantly challenging ourselves to do more and better.”
Bill Ammons, founding partner and portfolio manager at AlbaCore Capital Group, said: “We are excited to be announcing this new partnership with Babylon to support its growth plans towards making healthcare accessible and affordable to everyone.”
David Allen, managing partner and chief investment officer at AlbaCore Capital Group, added: “As creators of innovative solutions, Babylon and AlbaCore are great partners. We recognise their proven ability to grow rapidly and deliver leading technology-based healthcare, forming the basis for our investment.”