The U.K. care home sector is facing significant challenges, with shrinking capacity and a lack of transparency over pricing and service availability. Addressing these issues is Lottie, an online marketplace that helps families find the best care homes and services for their elderly loved ones. Recently, Lottie secured a $21 million (£16.35 million) investment in a Series A funding round led by U.S. venture capital firm Accel, with participation from existing backer General Catalyst.
Key Takeaway
Lottie, a U.K. care home marketplace, has raised $21 million in funding to improve transparency and accessibility in the care home sector. With real-time service availability and integrated software solutions, Lottie aims to simplify the process of finding suitable care homes for families.
Revolutionizing the Care Home Sector
The care home sector has yet to fully benefit from the digital revolution, with families often having to rely on local care services or incomplete directories and websites. Lottie aims to change that by providing real-time service availability, allowing users to instantly connect with care homes that have available capacity. This streamlines the search process, saving families time and effort.
Lottie’s acquisition of Found, a care home software company, further enhances its offerings. By integrating Found into its marketplace, Lottie can provide care providers with a comprehensive platform for managing enquiries, customer relationships, occupancy, and financials. In the future, Lottie plans to handle payments through the platform, simplifying the booking process for families.
Monetization and Expansion Plans
Lottie monetizes its platform through lead generation and a pay-per-query model, charging care providers for access to immediate vacancies. However, with the integration of Found, Lottie is shifting towards a marketplace model where it will take a percentage fee from each booked residency. Additionally, Lottie plans to charge care providers for using its software through a subscription model.
While Lottie is currently focused on the U.K. care home market, its recent backing from major U.S. venture capital firms indicates its global aspirations. However, Lottie’s co-founder and co-CEO, Will Donnelly, stated that international expansion is not anticipated until 2025. The company plans to use the additional funding to double its headcount to over 100 employees, with a particular focus on expanding its product and engineering teams.
With its new investment and strategic vision, Lottie aims to revolutionize the care home sector by providing transparency, convenience, and streamlined processes for both care seekers and providers. By leveraging technology and strategic partnerships, Lottie is poised to make a significant impact in the industry.
