Telenutrition platform Foodsmart banked a $200 million investment from The Rise Fund, which backs entrepreneurs working to achieve the United Nations’ Sustainable Development Goals.
The company touts the reach of its services to low-income workers, who are more likely to be affected by diet-related diseases and live in areas without high-quality and affordable groceries. According to Foodsmart, more than 40% of its patients who are food insecure become food secure through the program.
Foodsmart provides telenutrition services and food benefits management to 2.2 million members of employer-sponsored health plans, regional and national Medicaid managed care organizations, Medicare Advantage plans and commercial insurers. It also partners with Advocate Health, Intermountain Health and Memorial Hermann Health System.
Foodsmart offers nutrition counseling to patients struggling with diet-related health conditions—like obesity, diabetes, hypertension and high cholesterol—through its vast network of dietitians. It gives patients tangible access to healthy food through an online marketplace of nationwide grocers and local grocery discounts through its app, which saves an estimated 34% per grocery order. Foodsmart can also help patients enroll in and manage their SNAP benefits.
It also helps patients manage heart disease, irritable bowel disease and celiac disease through nutrition support.
In matched pair studies and randomized controlled trials, Foodsmart has shown $24 to $58 per member per month savings in the first year, and a significant improvement in HbA1c.
“We are excited to partner with TPG’s Rise Fund given their strong track record scaling the reach of organizations that create sustained impact for people of all income levels–including Medicaid members and blue collar workers,” said Jason Langheier, M.D., CEO and founder of Foodsmart, in a statement. “We support all people, regardless of economic status, with nutrition counseling and food buying support that changes their access to quality food, eating habits and health outcomes for the long run.”
Healthcare lead for The Rise Fund Tom Verghese said its investment furthers the fund's goal of improving healthcare for underserved and low-income people. “Foodsmart’s unique virtual care platform meets these challenges by providing access to the largest network of registered dietitians in the U.S. alongside medically tailored nutrition guidance to improve metabolic and whole body health," Verghese said in a statement.
The $200 million investment is expected to close in July 2024, subject to customary closing terms.
The Rise Funds are a core pillar of TPG Rise, TPG's global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, mission-driven companies. TPG Rise says it has approximately $19 billion in assets across The Rise Funds, TPG Rise Climate and the Evercare Health Fund.