Antonio Moraes, the grandson of a late distinguished Brazilian billionaire, was by no means occupied with becoming a member of the family-owned conglomerate of development firms and a financial institution. Shortly after graduating from faculty, he based one in all Brazil’s first affect funds, which invested primarily in firms that made healthcare extra accessible and reasonably priced.
However whereas attending Stanford College, the place Moraes acquired a grasp’s diploma in enterprise administration and healthcare coverage, he realized that as a substitute of investing in impactful firms, he wished to start out his personal.
As part of an entrepreneurship class, Moraes and his co-founder, an engineering grad scholar, James Wong, visited a number of eyeglass manufacturing factories in China. They found that designer frames that promote for as a lot as $600 within the U.S. price solely about $10 to provide. “We thought there’s one thing very unsuitable with these markups,” Moraes informed TechCrunch.
As a result of imaginative and prescient care and eyeglasses are costly, many workers purchase frames with their imaginative and prescient insurance coverage, however the advantages sometimes don’t cowl all the prices, Moraes mentioned. “With imaginative and prescient insurance coverage, folks count on to not pay something, however then they go away the optician’s workplace with a $300 out-of-pocket invoice.”
Moraes and Wong began XP Well being in late 2018, however through the pandemic, they shifted the startup’s focus to a digital-first, AI-driven platform that gives workers eye exams and eyewear advantages at considerably decrease prices than present imaginative and prescient insurance policy.
On Thursday, XP Well being introduced a $33.2 million Collection B led by QED Traders with participation from Canvas Ventures, American Household Ventures, HC9 Ventures, Valor Capital Group and Manchester Story. The spherical comes lower than two years after XP Well being’s $17.1 million Collection A.
XP Well being members who purchase eyeglasses nearly can save as a lot as 69% off the retail worth, Moraes mentioned. The corporate claims to not mark up the frames or lenses sourced immediately from factories in Asia. As a substitute, XP Well being generates its income by recurring membership charges.
“In lots of instances, our members pay $0 for a pair of high-quality designer frames with the best-in-class lenses, and for the attention examination as properly,” Moraes mentioned.
XP Well being’s AI-powered platform makes use of facial recognition to advocate glasses that match the member’s model and face form.
Members also can purchase glasses from bodily eyewear retailers at a reduction, however Moraes emphasised {that a} comparable body can price as a lot as two to 3 instances much less if bought from the corporate’s on-line platform.
During the last two years, the corporate has expanded its enterprise buyer roster from 30 to over 3,000 enterprise prospects, together with Docusign, Navistar, Chegg, and Sequoia Consulting, who supply XP Well being as a profit to their workers. XP Well being additionally has fashioned strategic partnerships with insurance coverage suppliers equivalent to Guardian Life Insurance coverage, which supplies imaginative and prescient advantages to small companies.
After all, XP Well being isn’t the one firm that’s taking out the intermediary in eyewear. That is already a crowded market. Warby Parker sells on to shoppers as does Eyebuydirect, Firmoo, Pair Eyewear, and Zenni, to call just a few different choices. However Moraes claims XP Well being is the one startup that’s taking over incumbent imaginative and prescient insurance coverage suppliers, a market that’s dominated by VSP and EyeMed Imaginative and prescient Care.
But, XP Well being doesn’t think about itself to be an insurance coverage firm. That’s as a result of what these firms supply isn’t insurance coverage in a conventional sense. “There’s no actual threat,” Moraes mentioned. “It’s a company profit.”
