Reducing Exposure to COVID-19 for 1 Million+ Patients with Healthtech Investment

CAF—development bank of Latin America—, together with Mexico’s ALLVP Fund, has invested in the SocialDiabetes startup, which boasts a comprehensive digital therapy platform for the digitalization of diabetes management. Self-monitoring tools, telemedicine and medical device connectivity (IoT) enable remote patient monitoring, real-time data management, and analysis of user behavior and evolution.

Diabetes is one of the greatest health challenges of the 21st century (415 million people live with this disease, with the number set to rise to 642 million by 2040), and it is one of the heaviest burdens on global health (12%), according to figures from the Pan American Health Organization (PAHO).  This growing demand threatens the sustainability of healthcare systems, which is further impaired by persistent shortages of endocrine and primary care staff (especially in developing countries).

The goal of the investment is to support the company in meeting the extraordinary needs of the health sector regarding the COVID-19 pandemic, expanding its dissemination and marketing capabilities to boost operations in Mexico and its plans to expand to other Latin American countries. One of the advantages of this solution is that it allows patients to be in contact with a remote healthcare professional, thus avoiding having to go to a healthcare center and reducing the chances of contracting COVID-19 in this high risk group.

“For CAF, investment is of particular relevance because of the impact and scalability that SocialDiabetes digital health solutions can have in treating our countries’ diabetic populations in the face of the challenges posed by the COVID-19 pandemic,” noted Jorge Velarde, Director of Funds and Impact Investments at CAF.

With offices in Barcelona, London and Mexico City, the SocialDiabetes startup is a leader in the Hispanic digital solutions market and one of the most prestigious global platforms for diabetes management, and thanks to this investment, will deploy a combined strategy of partnerships with the public and private sectors to improve the quality of life for more than 1 million patients over the next 2 years.

“CAF’s investment gives us a feeling of being in the best company to meet the challenges of the coming years. In the region, healthcare spending on diabetes is estimated between USD 45 million and USD 77 million, and is expected to increase to USD 130 million by 2040 (pre-COVID-19 forecasts). Diabetes and the entire spectrum of metabolic syndromes will become an increasing public health priority.  CAF’s prestige and leadership among Latin American governments and institutions will help us to channel our vocation to digital transformation of healthcare systems at a key moment in our history, as a company and as a society,” said María Jesús Salido, CEO of SocialDiabetes.

The company will also continue to expand its capabilities by incorporating artificial intelligence algorithms, an increasingly extensive list of connected devices, and favoring mutual exchange and support through support networks and patient communities.

“We are facing an unprecedented global crisis in the health sector, and we need to implement and support scaling solutions like SocialDiabetes. We are convinced that CAF’s incorporation as partners will be instrumental for regional growth, and to continue to support the 40 million+ people in the region living with diabetes,” noted Antonia Rojas, ALLVP Partner.

About:

SocialDiabetes was founded in 2012 by Victor Bautista and María Jesús Salido. The company has built advanced algorithms with high clinical accuracy to improve the lives of patients with diabetes, while generating valuable information for healthcare professionals. The company has been recognized with multiple awards in Europe for its innovative and effective approach to the management of this disease. With more than 400,000 downloads to date, SocialDiabetes is the number one app in Spain and Mexico for diabetes monitoring on both iOS and Android.

ALLVP is the leading Spanish-speaking VC investment fund. Founded in 2012, it manages more than USD 200 million across three funds. ALLVP invests in teams that are looking to transform people's daily lives in Latin America, changing the way they buy, pay, move, work and learn. The team has invested in 31 companies, including Cornershop, the supermarket marketplace, RobinFood, the omnichannel home-cooked food platform, and Flat, Mexico’s pioneering proptech startup. The firm is a member of the Latin-American Venture Capital Association (LAVCA), the Mexican Private Capital Association (AMEXCAP), the Chilean Venture Capital Association (ACVC), and Endeavor Investor Network.