Swedish Startup Space

Swedish Diabetes Startups Merges With Competitor – And Raises $8 Million

Written by on September 14, 2016
Editors Note: This post is part of a series called Featured posts, presented by Breakit.

The Swedish e-health firm merges with Glooko, a Silicon Valley competitor. The pair has also raised capital from Samsung Ventures, among others.

Currently operating in 27 countries with over 3,000 client-clinics, Diasend’s platform helps diabetics and health care providers collect and access crucial health data.

For clinics, Diasend provides a single platform for all patient data. For patients, a mobile app provides an overview of insulin levels and vital info.

“Individuals can register on their own. But the clinic will need a subscription to synchronize the patients data with its systems,” said Anders Sonesson, co-founder and CEO of Diasend.

Founded in 2004, last year Diasend had net sales of about $4 million, with an operating profit of nearly $900,000.

One key to their success – their software platform is compatible with glucose meters and other hardware from all the world’s major manufacturers of diabetes related hardware.

Now, the Swedish e-health startup merged with its fiercest competitor – Silicon Valley-based Glooko.

“Glooko have created a great mobile product, while we have been stronger on the desktop. We have also been successful in separate markets,” said Mr. Sonesson. “So, instead of competing, we pooled our resources to develop faster and better.”

“It’s lots of fun,” he said. “Overnight, we went from 30 employees to 80, and we will continue recruiting.”

Although Diasend will eventually transition to using the Glooko brand, Anders Sonesson described the new partnership as a “clean merger”. He would not comment on what the two companies are valued at, or how shares in the new parent company will be distributed.

The new couple have received a wedding present in the form of a financing round totaling nearly $8 million.

“Here in Europe, we are primarily focusing on developing the marketing and sales departments. Then, we will add more services to the platform,” said Sonesson. “We will also recruit both sales staff and developers in order to continue growing.”

Glooko had previously raised over $13 million in venture capital, but this latest round is a big step up for Diasend, which has raised about $3 million so far.

According to public documents, the money comes mainly from a dark horse of the Swedish tech industry – K-svets Ventures, which owns 46.6 percent of Diasend’s shares.

K-svets Ventures is the VC arm of a construction firm called K-svets, headquartered in Stenungsund on Sweden’s west coast.

Behind K-svets Ventures is entrepreneur Leif Kristensson. During its last financial year, K-svets had sales of $120 million and an operating profit of $8 million. On its website K-svets describes itself as “Sweden’s leader in industrial piping and tank assembly”.

Subscribe to our mailing list