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Antonio Moraes , the grandson of a late spectacular Brazilian billionaire , was never concerned in joining the family - owned conglomerate of construction companies and a bank . Shortly after graduating from college , he founded one of Brazil ’s first impact funds , which invested primarily in companies that made healthcare more approachable and low-cost .
But while attending Stanford University , where Moraes received a master ’s grade in business governance and health care insurance policy , he realized that instead of induct in impactful companies , he wanted to initiate his own .
As a part of an entrepreneurship grade , Moraes and his conscientious objector - founder , an engine room grad student , James Wong , chitchat multiple eyeglass manufacturing manufactory in China . They discovered that designer frame of reference that sell for as much as $ 600 in the U.S. cost only about $ 10 to create . “ We believe there ’s something very incorrect with these markups , ” Moraes severalize TechCrunch .
Because vision care and glasses are expensive , many employees buy frame with their vision insurance , but the benefits typically do n’t cover all the costs , Moraes said . “ With vision insurance policy , citizenry expect not to pay anything , but then they entrust the optician ’s function with a $ 300 out - of - sack bill . ”
Moraes and Wong startedXP Healthin late 2018 , but during the pandemic , they shifted the inauguration ’s focusing to a digital - first , AI - labor chopine that declare oneself employees oculus examination and eyewear benefits at significantly lower cost than existing imaginativeness insurance plans .
On Thursday , XP Health announced a $ 33.2 million Series B led by QED Investors with involution from Canvas Ventures , American Family Ventures , HC9 Ventures , Valor Capital Group and Manchester Story . The one shot come less than two years after XP Health ’s $ 17.1 million Series A.
XP Health appendage who bribe eyeglasses almost can save up as much as 69 % off the retail price , Moraes said . The company claims not to score up the frames or lenses source directly from factory in Asia . Instead , XP Health generates its revenue through recurring rank fees .
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“ In many cases , our members ante up $ 0 for a duo of high - quality designer frames with the best - in - class lenses , and for the eye exam as well , ” Moraes allege .
XP Health ’s AI - powered political platform habituate facial acknowledgment to commend spectacles that fit out the appendage ’s fashion and face up shape .
Members can also buy trash from physical eyewear retailers at a deduction , but Moraes emphasized that a alike frame of reference can cost as much as two to three times less if purchase from the company ’s on-line platform .
Over the last two age , the company has lucubrate its business enterprise client roll from 30 to over 3,000 business customers , including Docusign , Navistar , Chegg , and Sequoia Consulting , who offer XP Health as a welfare to their employees . XP Health also has formed strategical partnerships with insurance providers such as Guardian Life Insurance , which provide imaginativeness benefits to small businesses .
Of course , XP Health is not the only company that ’s take out the middleman in eyewear . This is already a crowded market . Warby Parkersells immediately to consumers as does Eyebuydirect , Firmoo , Pair Eyewear , and Zenni , to name a few other options . But Moraes arrogate XP Health is the only inauguration that ’s necessitate on incumbent vision insurance providers , a market that ’s dominated by VSP and EyeMed Vision Care .
Yet , XP Health does n’t look at itself to be an insurance policy troupe . That ’s because what these companies extend is not indemnity in a traditional sense . “ There ’s no material risk , ” Moraes said . “ It ’s a incorporated benefit . ”
