Rightway: $100 Million Funding And $1.1 Billion Valuation

By Dan Anderson ● April 2, 2021
  • Leading healthcare company Rightway announced recently that it has raised $100 million in Series C. These are the details.

Rightway — a leading healthcare technology and services company transforming care navigation and pharmacy benefits — announced recently that it has raised $100 million in Series C financing at a valuation of $1.1 billion. This round of funding was led by Khosla Ventures, with participation from Thrive Capital, Tiger Global Management, and other existing investors.

Rightway’s growth to serve over 500k members across 850 clients and a 250% increase in headcount has positioned the company to bring a new level of transformation to the ailing healthcare landscape. And the investment will be used to rapidly expand Rightway’s footprint in the employer market and accelerate its advancement across health plans, third-party administrators and other strategic channels.

This funding round will also advance the build of RightwayRx, Plus Rightway’s new-to-the-world PBM that is rearchitecting the broken pharmacy benefits model by realigning stakeholders across the supply chain, enabling risk- and condition-based engagement, and driving optimal medication utilization through proprietary clinical protocols.

Since being founded in 2017, Rightway has used a combination of dedicated, clinical guidance and member-centric technology to help members get the highest quality care at the best price. And to date, Rightway has delivered industry-leading engagement and customer satisfaction that has driven double-digit decreases in total cost of care for clients. Plus Rightway is committed to empowering and advocating for each member, simplifying the healthcare experience while driving better outcomes and lower costs.

Last year, Rightway launched RightwayRx, a PBM solution that eliminates legacy tactics and misaligned incentives, transforming the model into one that is fair and transparent. In combining this model with best-in-class member engagement and expert guidance, Rightway is delivering the only solution that puts the member at the center to sustainably reduce pharmacy spend. And RightwayRx has been able to deliver its clients an average of 20% reduction in year 1 pharmacy cost savings while simultaneously lowering member out-of-pocket costs.

KEY QUOTES:

“Rightway is building the most comprehensive platform within the enterprise healthcare ecosystem — a digital-first front door that provides every member the same experience as having a doctor in the family. By pairing navigation with a new-to-the-world PBM, we believe that we are in the best position to engage employees, support their longitudinal healthcare journey, and substantially reduce costs for the member and their employer.” 

“We are pleased to welcome Samir to our board as he shares our vision of transforming healthcare through better technology, increased alignment, and a relentless focus on the experience for our members and our clients.”

— Rightway’s CEO Jordan Feldman

“We’re excited to partner with Rightway as they continue to redefine the member experience in healthcare, improving outcomes and reducing cost of care for their clients. PBMs are broken. Rightway’s approach of creating alignment and transparency while introducing its best-in-class navigation is poised to fundamentally disrupt a $500B market for employer pharmacy spend,” he added.

— Samir Kaul, founding general partner at Khosla Ventures, who will be joining Rightway’s board of directors