Diabetes startup Omada Health finally went public after 14 years. Here’s who made bank.
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
Diabetes startup Omada Health finally went public after 14 years. Here’s who made bank.
Omada Health went public on Friday on the Nasdaq. Its stock opened at $23 a share and jumped as high as $28.40 Friday morning. Omada launched in 2011 to provide virtual care for prediabetes, making its name in the years following for diabetes management. The San Francisco-based company says most of its new employer and health plan clients approach Omada initially, interested in its metabolic health track. It’s the second digital health IPO of the year, following physical therapy company Hinge Health on May 21.
Omada Health went public on Friday on the Nasdaq. Vanja Savic/Photo by Vanja Savic
lighning bolt icon An icon in the shape of a lightning bolt.
lighning bolt icon An icon in the shape of a lightning bolt. Impact Link
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now.
Omada Health just went public at a $1.1 billion valuation — 14 years after its founding.
It’s the second digital health IPO of the year, following physical therapy company Hinge Health, which went public on May 21. The two IPOs come after a multiyear drought for healthcare public market debuts.
And so far, Omada’s IPO hasn’t disappointed. While the chronic care company priced its initial shares at $19, its stock opened at $23 a share and jumped as high as $28.40 Friday morning, nearly a 50% increase.
Omada Health launched in 2011 to provide virtual care for prediabetes, making its name in the years following for diabetes management.
In recent years, its business has surged in new areas beyond diabetes care. Omada’s weight care business has boomed as more patients taking GLP-1 drugs like Ozempic for weight loss seek companion care. The San Francisco-based company says most of its new employer and health plan clients approach Omada initially, interested in its metabolic health track.
Omada’s initial valuation of $1.1 billion is roughly where it was privately valued. Omada’s last private fundraise, a $192 million Series E round announced in February 2022, put Omada’s valuation over $1 billion.
It’s perhaps the best outcome Omada’s investors could’ve hoped for, given that many digital health startups now looking to IPO last raised at huge valuations during VC’s ZIRP period. Those valuations could be difficult to realize in today’s market. Hinge Health, for example, went public at a $2.6 billion valuation after being valued in its 2021 fundraise at $6.2 billion.
We don’t know what Omada Health’s investors paid for their shares, so we can’t calculate their profit. However, since Omada’s shares opened on the stock market at $23, we used that price to determine the worth of its investors’ stakes. None of Omada’s major investors sold any shares in its IPO.
Here’s what the stakes of Omada Health’s major investors and executives are worth after its IPO.
Source: https://www.businessinsider.com/heres-who-got-rich-omada-healths-ipo-2025-6