After successfully securing $300 million in a Series D funding round in January 2021, the company’s aspirations were set high, with CEO Daniel Perez expressing hopes of going public the following year. However, unforeseen economic challenges, including surging interest rates, led to a temporary halt in the plans of many healthcare startups, including Hinge Health, to debut in the public market.
Hinge Health, known for its virtual physical therapy solutions addressing joint and muscle pain, didn’t let these challenges deter its ambitions. Instead, the company adopted a patient approach, waiting for the right moment to make its move. In a candid conversation during the HLTH conference in Las Vegas, Perez shared that the company is in a robust financial position, with over $400 million in reserves. This financial stability means there’s no immediate pressure to raise capital, but the company is keen to be operationally prepared for an IPO once the market conditions are favourable.
While the exact timeline for the IPO remains fluid, Perez emphasised the company’s internal readiness. By the end of 2023, Hinge Health aims to be fully prepared for this significant step. But that’s not all; the company is also actively exploring opportunities to acquire smaller digital-health startups. This strategic move is part of Hinge Health’s broader vision to achieve profitability. Perez is optimistic that the company will reach a break-even point by 2024.
After raising an impressive $600 million in funding in October 2021, the company’s valuation soared to a staggering $6.2 billion. In the competitive landscape of digital health, Hinge Health’s primary rival, Sword Health, has also indicated similar aspirations. Sword Health’s CEO, Virgilio Bento, has shared plans to reach profitability by 2024, post which an IPO would be on the cards.
Hinge Health’s commitment to innovation and expansion is evident in its hiring strategies. The company has recently inaugurated an office in India and has plans to onboard approximately 100 employees by the year’s end. Perez highlighted the strategic advantage of hiring in India, noting that regional research and development professionals can deliver results comparable to their US counterparts but at a fraction of the cost.
Acquisitions have been a pivotal part of Hinge Health’s growth strategy. After concluding several deals in 2021, the company is on the lookout for more. The primary objective is to identify companies that can enhance Hinge Health’s musculoskeletal outcomes, especially for its Medicare Advantage clientele.
In addition to its acquisition endeavours, Hinge Health has been proactive in launching its proprietary programs. A notable initiative is the fall prevention program for seniors, introduced in October. Furthermore, the company has broadened its women’s pelvic health program and has ventured into offering house calls for in-person physical therapy since January.
