Komodo Health Eyes IPO This Summer

Healthcare mapmaker Komodo Health has hired banks in preparation for an initial public offering (IPO) this summer, according to an Axios report Monday (March 14).

Komodo, which was last valued at $3.3 billion, could help to open up the stagnant IPO market when it goes public later this year, the report says. As public equities struggle in the tightening economy, many companies are focusing on sales rather than pushing forward with IPO plans, according to Axios.

So far, there have been 16 IPOs, down from 102 in the first quarter of 2021, according to Renaissance Capital. There have been 23 special purpose acquisition company (SPAC) deals in the first quarter of 2022.

Komodo, which has not yet been profitable, has an annual recurring revenue of about $150 million. Last year, the company secured $220 million in a Series E funding round that pushed its valuation to $3.3 billion.

As for the IPO plans, Komodo has hired Goldman Sachs and SVB Securities as lead bookrunners, multiple sources told Axios. The company is expected to file confidentially for its IPO in the next couple of months, with plans to go public in June or July, based on market conditions.

In January, Komodo Co-founder Arif Nathoo hinted that “over the course of this year, you’ll expect to see us take steps to get closer to the public markets.”

Related: WeDoctor Cuts Jobs After IPO Delay

Earlier this month, Chinese healthcare platform WeDoctor announced plans to lay off a large number of its workers after plans for an IPO were put on hold. The company had already cut about 1,000 jobs over the last year — from 4,000 employees to 3,000 — with this latest round of layoffs bringing the company headcount to the mid-to-low-2000s.

WeDoctor is now considering going public via a special purpose acquisition company, instead of an IPO, the sources said. WeDoctor initially planned to raise $500 million to $1 billion, and was in the process of raising $350 million ahead of the IPO, according to previous PYMNTS reporting.