Lottie Secures $21 Million for Care Home Online Marketplace

Lottie Secures $21 Million for Care Home Online Marketplace

In response to the growing complexities of the U.K. care home market, Lottie's digital solution aims to make life easier for families seeking appropriate care for their elderly relatives. As the U.K. sees its elderly population grow, alongside a shrinking care sector worth £7.7 billion, the London-based start-up is ensuring transparency and efficiency are at the forefront.

Transaction Insights:

  • Deal Value: $21 million (£16.35 million) in a Series A round.
  • Previous Funding: After a $7 million raise last year, this latest influx of funds takes Lottie's total capital to $31 million.
  • Lead Investor: U.S. venture titan Accel spearheaded this round, supported by General Catalyst, an existing investor.
  • Target: Lottie, an online platform dedicated to connecting families with available care homes and services.

The Lottie Breakdown:

  • Digital Disruption: Historically, the social care sector has been slow to digitise. Lottie challenges this norm by offering a seamless connection between care seekers and providers.
  • Found Acquisition: By acquiring care software firm Found, Lottie ensures real-time service availability, displaying only those care homes with vacancies - a crucial factor for families in urgent need.
  • Platform Capabilities: Integrating Found, Lottie presents care providers with an all-in-one platform, managing customer relations, occupancy, and finances. In the pipeline, Lottie aims to incorporate online payment options, mirroring popular booking platforms.

The Road Ahead:

Given the present focus on the U.K. market, the involvement of major U.S. venture firms Accel and General Catalyst hints at Lottie's potential international expansion. Though Lottie's co-founder and co-CEO, Will Donnelly, indicates that international ventures might be on hold until 2025, their sights are set on the U.S., given the market parallels.

As part of its growth strategy, Lottie aims to double its team strength by the end of the following year. "Our primary hiring drive will be directed at bolstering our product and engineering divisions," mentions Donnelly. With the additional funding, Lottie is set to refine Found into an all-encompassing home operating system, allowing providers a singular platform to manage operations.

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