On the heels of a $24 million round last year, Carrot Fertility is bringing in more funds to expand its fertility benefit to more employers. The San Francisco-based startup closed a $75 million round led by Tiger Global Management, which has recently gone on a digital health investment spree.
“We’re thrilled 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,” Carrot CEO Tammy Sun said in a news release.
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Investors have been pouring more funding into fertility benefits, as companies look to win over and keep talent. Maven, another startup focused on reproductive and maternal health, recently passed a $1 billion valuation on a recent funding round. Labcorp also recently bought Ovia, a digital health company for fertility- and pregnancy-tracking.
Although it faces several well-funded competitors, Carrot has built out a large customer base. The company expects to have 450 customers representing nearly 1 million lives by the end of the year (it currently has more than 250 customers). Some businesses offering its services include Eventbrite, Slack and Peloton, though it has clients across more than 50 different countries.
“Carrot has emerged as the market leader in helping employers and health plans deliver comprehensive fertility coverage for globally distributed workforces, with a clear focus on cost savings, flexibility, and an inclusive member experience,” Tiger Global investor Jay Chen said in a news release, adding that Carrot’s technology and provider network differentiated it from the rest.
The startup offers a range of fertility services, including egg freezing, in-vitro fertilization, adoptions, donors and surrogacy. Employers can also load a debit card to help cover the cost.
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Carrot plans to use the funds to build out its product and expand to more health plans and multinational employers.
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