Health service provider Babylon Health has raised $550 million in a fundraising round backed by the Kingdom of Saudi Arabia’s public investment fund (PIF), according to media reports. After the fundraising, Babylon said that its valuation was estimated at $2 billion.
The fundraising round also involved German reinsurer Munich Re’s ERGO Fund and US health giant Centene.The firm said that $450 million from the funding is confirmed, of which $50 million will be injected by an investor at a later date. The investor is Centene. The remainder will be closed shortly, the firm added.
Centene has a market valuation of more than $21 billion and will be acquiring a $50 million stake in the healthcare firm.
Babylon is a British technology startup that developed the new AI chatbot service being used by the UK’s National Healthcare Service (NHS). The firm is seeking to disrupt the health industry and has signed contracts with Samsung, Prudential as well as Bupa. The chatbot is reported to diagnose a patient’s medical conditions as exact as a doctor.
Babylon’s chatbot scored higher than average in a practice test compiled for physicians. The firm was founded in 2013 by Dr. Ali Parsa, who previously ran Circle Health.
According to media reports, Parsa said last year that the team is working swiftly to put Babylon on the global front. “This investment will allow us to maximise the number of lives we touch across the world,” Parsa said in a statement. “We have a long way to go and a lot still to deliver.”
The Kingdom is speeding up its technology investment as part of Vision 2030 to ‘lead the digital economy’.