After pivoting from a site primarily used to schedule doctor visits to a platform for virtual live-video doctor appointments amid the Covid-19 pandemic, the New York-based telehealth company Zocdoc has raised a growth round of $150 million from private equity firm Francisco Partners. Being a growth round, it’ll be used to expand operations for Zocdoc, which is itself already a mature company with stable revenues.

The new round is the newest major round that Zocdoc has raised in the span of over five years. The company’s last round before now was a $130 million Series D that valued it at $1.8 billion, whereas the valuation that came with this new round isn’t disclosed.

That Zocdoc had not raised outside funding for the past five years before now is a testament to a healthy self-sustaining business for the company. Not surprisingly, the company says that it’s profitable, quite a rarity in its world of venture-backed high-growth technology companies.

Before the Covid-19 pandemic, Zocdoc said that its revenue grew by 35% year-over-year, but then got slowed down due to the pandemic. Nonetheless, the company claims it still posted annual revenue growth in 2020 but didn’t provide any concrete figures.

With its new funding round, Zocdoc has now raised a total of nearly $400 million in venture funding. The company has come a long way from a small doctor booking app in 2007 to a high-growth company that seen success as well as a significant number of controversies, most recently a lawsuit from a co-founder alleging fraud and misconduct in his firing. 

Before the co-founder controversy, Zocdoc had earlier faced extensive allegations of sexual misconduct and misbehavior in the workplace.

“Today, Zocdoc is the rarest type of private technology company: we are profitable with accelerating growth, and we are a business that does real good for the world,” Zocdoc CEO Oliver Kharraz, M.D. said in a press statement. “..I have never been more proud of the Zocdoc team or more excited about our future,” he exclaimed.

Photo credit: Zocdoc

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