Felix Health has secured $53 million from the Canadian Business Growth Fund (CBGF) and other existing investors as it looks to balance newfound profitability with the growth of its personalized health options for Canadians.
“We saw a big opportunity for us to continue to push our lead in the market.”
The growth financing, which is a roughly equal mix of equity and debt, comes off a hot streak for the Toronto-based telehealth platform. It claimed it attained profitability in July while also managing 80 percent year-over-year growth, and bringing in an annual run rate of $150 million CAD (monthly revenue times 12).
“We certainly weren’t in a position where we needed to raise capital, but we saw a big opportunity for us to continue to push our lead in the market,” Felix CEO Kyle Zien said in an exclusive interview with BetaKit.
CBGF led the round, with participation from the Business Development Bank of Canada (BDC) Women in Tech Venture Fund, BMO Capital Partners, Scotiabank, Whitecap Venture Partners, and H Venture Partners. Zien declined to share Felix’s valuation, but claimed the deal was a “significant up round.”
Investors saw an opportunity to give Felix the capital to be more “aggressive” in the market over the next couple of years, according to co-founder and COO Emma Stern. Dale Tingley, CBGF co-managing partner, told BetaKit that the company’s clear growth strategy and impressive leadership made the additional investment “an easy decision.”
Felix was founded in 2019 to address the healthcare needs of Canadians for common issues like acne, contraception, erectile dysfunction, and hair loss. It sells therapeutics through a virtual platform that covers assessments, lab tests, prescriptions, and drug delivery, in every province except for Quebec.
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The company has since expanded to more than 20 categories—including mental health care, menopause, and weight loss management—which Zien said are driving strong growth. It most recently launched a “longevity” testing platform for ongoing health monitoring through biomarker tests to meet demand for preventative care. Part of this demand, the startup argues, comes from an overburdened healthcare system in Canada that faces a shortage of primary care doctors.
Felix is also part of a growing list of Canadian telehealth startups, such as Phoenix and Maple, that make convenience and discretion part of their draw, particularly for stigmatized conditions. While Felix currently targets consumers directly and claims to have facilitated 1 million medical consultations, Stern said the company is continuing to explore other avenues of access. Before this round, the startup had raised more than $30 million to fuel its expansion.
Felix previously told BetaKit that it saw a 100-percent increase in weight loss management patients from January to August of this year. Its program includes GLP-1 receptor agonist drugs like Ozempic that were originally developed to treat diabetes but also demonstrate efficacy for weight loss.
Stern said that Felix wants to “have all our operations scaled up and ready for market” when generic GLP-1 drugs hit Canadian shelves next year. Ozempic maker Novo Nordisk’s patent protection in Canada for the drug is set to expire in early 2026.
Menopause care has been another driving category for Felix over the past eight to nine months, Stern said. Other Canadian tech companies, such as June Health, Coral, and Dialogue, have launched digital platforms to facilitate treatment for menopause symptoms. Stern said that Felix’s menopause care stands out, however, because the platform can help patients address their other healthcare needs in the same place.
While balancing profitability and growth, the company plans to use the funding to expand its team of over 150 and invest in some of its newer categories, including menopause and weight management through GLP-1s.
Zien said the team is also diversifying its marketing tactics by investing in “high-profile TV moments,” like commercials during Blue Jays games. “We’re expanding the aperture of where you’ll be able to discover the Felix platform,” he said.
Feature image courtesy Freepik