Welbe secures USD 7 million in Series A funding for Mexico expansion

Welbe, a provider of occupational health management solutions for large and medium-sized enterprises, has secured USD 7 million in a Series A round co-led by Brazilian investment firm Volpe Capital and the International Finance Corporation (IFC) from the World Bank Group.

Welbe's Series A round also saw participation from other investors such as NAZCA, Kortex, GreenRock, Marathon, and Parceiro Ventures. The funding will aid in the commercial expansion of the company in Mexican states near the U.S. border, with a focus on rapidly growing regions driven by the nearshoring of new industries, especially in the North and El Bajío.

Founded in 2021 by Brazilian entrepreneurs Eduardo Medeiros and Marcus Paiva, Welbe offers an integrated platform for the local health ecosystem, catering to HR departments, doctors, and employees. The platform grants access to a range of quality clinics and laboratories, currently serving over 100 large companies, including Telefónica, BIC, RedBull, and Engie.

Welbe tackles a prevalent challenge in Latin America: the bureaucratic and expensive nature of occupational health services with restricted access. The company streamlines these procedures, empowering employers to provide private health benefits despite budget limitations. As per the International Labour Organization, Latin America ranks third worldwide in work-related fatalities, many of which could be averted with appropriate examinations and treatments.

Eduardo Medeiros, CEO and co-founder, highlighted that Welbe's solutions have transformed occupational health into a valuable benefit for employees, minimizing their potential additional expenses and promoting preventive healthcare.

The platform has notably boosted the demand for preventive exams, with cytology screenings among women surging from 2% to 35%, and mammograms from 1.2% to 28%. Prostate exams for men over 45 have increased from 0.23% to 13.4%. Welbe has facilitated 68% of its users in undergoing a medical checkup for the first time, automating and streamlining over 70% of health-related bureaucracy.

Welbe, based in Mexico, operates in multiple regions including Mexico City, Jalisco, Monterrey, Querétaro, Puebla, Baja California, and León. The company aims to expand its B2B2C segment in the upcoming years, with a particular focus on the U.S.-Mexico border region, which houses over 47 industrial parks. As per the Inter-American Development Bank, nearshoring has the potential to boost Latin American and Caribbean exports by $78 billion annually, with Mexico contributing $35.3 billion to this figure.

Welbe has recently named Rodrigo Marques as CFO to oversee investor relations and spearhead financial growth. Established in 2021 by Eduardo Medeiros and Marcus Paiva, Welbe commenced operations in 2022 following a successful $3 million pre-seed funding round. The company currently has a workforce of 92 individuals, with 18 based in Brazil.

Eduardo Medeiros was motivated to establish Welbe following his hospitalization due to COVID-19. Recognizing the critical need for accessible and high-quality healthcare in light of the steep expenses associated with the Mexican healthcare system, he, along with Marcus Paiva, who had prior experience with ClickBus in Asia, identified an opportunity to develop a comprehensive occupational health management platform.

The investment from Volpe Capital is in line with their strategy to back high-growth technology companies in Latin America. Gabriel Marcassa, a partner at Volpe Capital, emphasized Welbe's innovative approach in tackling Mexico's healthcare obstacles and its capacity to revolutionize access to quality healthcare for employees.

Welbe's platform incorporates microservices supported by AWS, facilitating smooth integration with healthcare providers, labs, clinics, and insurance companies via APIs. The company possesses data security certifications including ISO27001, SOC Type 1 and 2, and adheres to national health regulations.

Welbe's model has demonstrated tangible results, including enhancing health management efficiency by more than 40%, decreasing employee turnover by 38%, reducing disability durations by 43%, and lowering medical insurance expenses by 14%. The company's holistic approach not only improves employee health and well-being but also streamlines resources and costs for businesses.

Welbe's future plans involve further expansion in Mexico and potential entry into other Latin American nations. The company's objective is to democratize healthcare access, offering quality services to a wider demographic and effecting substantial enhancements in occupational health management.