Ro CEO Zachariah Reitano recently shared his thoughts on the benefits of being a private company during an event. While he did not confirm any plans for an IPO in the near future, Reitano emphasized the importance of focusing on delivering high-quality products for their patients at the moment.
Ro, a telehealth company founded in 2017, has garnered over $1 billion in venture capital funding and recently raised $150 million in a funding round. The company, valued at around $6.6 billion, has seen success in various health categories, including erectile dysfunction, hair growth, fertility, and skin health. One notable expansion for Ro has been into weight loss drugs, which Reitano described as a significant and uncomfortable bet for the company.
Reitano highlighted the growing demand for GLP-1s options on their platform, noting that the company began developing the program in 2021 and has since seen rapid growth in this sector. He explained that the decision to offer weight loss drugs was a natural progression for Ro, given the impact of conditions like obesity on other health categories the company addresses.
According to PitchBook data, many late-stage startup founders are opting to stay private longer, citing various benefits of remaining a private company. Additionally, the rise of the secondaries market has provided investors and employees with liquidity options without the need for an IPO.
Reitano’s insights shed light on the strategic decisions that Ro has made to expand its services and offerings, focusing on meeting the needs and demands of both providers and patients. As the company continues to grow and innovate in the telehealth space, it will be interesting to see how Ro navigates the evolving healthcare landscape and maintains its position as a leader in the industry.
