Antonio Moraes, the grandson of a late outstanding Brazilian billionaire, was by no means all in favour of becoming a member of the family-owned conglomerate of building corporations and a financial institution. Shortly after graduating from faculty, he based one in all Brazil’s first impression funds, which invested primarily in corporations that made healthcare extra accessible and inexpensive.
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 corporations, he needed to start out his personal.
As part of an entrepreneurship class, Moraes and his co-founder, an engineering grad pupil, 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. value solely about $10 to supply. “We thought there’s one thing very improper with these markups,” Moraes instructed 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 stated. “With imaginative and prescient insurance coverage, individuals 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 throughout the pandemic, they shifted the startup’s focus to a digital-first, AI-driven platform that provides 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 Sequence B led by QED Buyers 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 Sequence A.
XP Well being members who purchase eyeglasses just about can save as a lot as 69% off the retail worth, Moraes stated. 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 via recurring membership charges.
“In lots of circumstances, our members pay $0 for a pair of high-quality designer frames with the best-in-class lenses, and for the attention examination as nicely,” Moraes stated.
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 can even purchase glasses from bodily eyewear retailers at a reduction, however Moraes emphasised {that a} comparable body can value as a lot as two to 3 instances much less if bought from the corporate’s on-line platform.
Over the past two years, the corporate has expanded its enterprise buyer roster from 30 to over 3,000 enterprise clients, together with Docusign, Navistar, Chegg, and Sequoia Consulting, who supply XP Well being as a profit to their workers. XP Well being additionally has shaped strategic partnerships with insurance coverage suppliers comparable to Guardian Life Insurance coverage, which supplies imaginative and prescient advantages to small companies.
After all, XP Well being shouldn’t be the one firm that’s taking out the intermediary in eyewear. That is already a crowded market. Warby Parker sells on to customers 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 take into account itself to be an insurance coverage firm. That’s as a result of what these corporations supply shouldn’t be insurance coverage in a conventional sense. “There’s no actual danger,” Moraes stated. “It’s a company profit.”
