Omada Health makes big haul on Series C funding round, some from major customers

Omada Health, a San Francisco digital health startup that helps employers identify and help employees at risk for chronic diseases, has nabbed $48 million in Series C funding, some of it from existing customers.

The new round — on top of earlier funding of about $29 million — is led by Norwest Venture Partners, plus a cohort of other venture capitalists including prior investors US Venture Partners and Andreessen Horowitz, new investors GE Ventures and dRx Capital, and major customers Humana Inc. (NYSE: HUM) and Providence Health & Services, according to Omada.

The company's flagship Prevent software product "helps individuals reduce their risk for obesity-related chronic diseases such as diabetes and heart disease," officials said in a Sept. 16 statement. The package includes a wireless scale that is "pre-synced" to a participant's account, a health-related curriculum, access to a personal health coach, and a peer network for support.

But its direct customers are employers looking to cut health costs and improve employee wellness, not the employees themselves.

Sean Duffy, the company's CEO and co-founder, told me late Tuesday the move into heart disease, after a prior focus solely on diabetes, makes the four-year-old startup a "one-stop" resource for people at near-term risk of transitioning into one or more chronic diseases.

The fast-growing firm has gone from 75 employees to 185 in the past 12 months, Duffy said.

Its Bay Area customers include Costco stores and Stanford Hospital. Kaiser Permanente, Lowe's and Iron Mountain are also customers.