In a turn of events where debt and acquisition dance hand in hand, Chrome Holding Co., formerly known as 23andMe Holding Co., has agreed with Bambu Ventures to sell struggling telemedicine company Lemonaid Health. The deal, structured through a Special Purpose Vehicle (SPV) in partnership with Innova Capital Partners, has placed Lemonaid's equity on the table for an acquisition, pending approval from the U.S. Bankruptcy Court for the Eastern District of Missouri. This information comes from a report by Bambu Ventures.
Emerging from a four-month collaboration, Bambu Ventures and Innova have eyed Lemonaid Health's on-demand telemedicine and online pharmacy services to catapult its growth and accessibility. "This acquisition is an incredible outcome for our portfolio, and we are thrilled to support Lemonaid Health’s next phase of growth," Kyle Pretsch, General Partner at Bambu Ventures, said concerning the plan to expand the company's services, as reported by Bambu Ventures.
Founded in 2013, Lemonaid Health became a pioneer within the telehealth industry, offering a platform that blended medical consultations with same-day prescription delivery. However, following the acquisition by 23andMe for $400 million, and subsequent challenges including growing losses in its drug discovery venture and a hefty $30 million settlement from a data breach, 23andMe filed for Chapter 11 bankruptcy protection in March. This paved the way for Bambu Ventures and Chrome Holding Co. to propose a $10 million price tag for Lemonaid, per the San Francisco Business Times.
