Kağan Sümer, cofounder of the now-defunct speedy grocery company Gorillas, has raised more cash for his new startup despite a delayed product launch, as he looks to enter the notoriously challenging consumer health market in Europe.
German-based Sugar (previously Mirror) originally planned to launch its health-based social media platform in the first half of 2024, but has yet to ship the product. Sources tell Sifted plans to release the app in Germany and the UK have been pushed back, but a limited number of users have been given beta testing access.
On top of a $6m-8m round in 2023, the startup has raised an unknown sum from investors, with support from existing backers such as Atlantic Labs sister fund FoodLabs, Giant Ventures and Calm/Storm Ventures, according to Sifted sources.
Sümer and his cofounder Uğur Samut (also a Gorillas cofounder) invested a “significant” amount of the new raise, which was smaller than the previous round, says one source with knowledge of the deal. One new investor was also involved.
With the vast majority of Europeans’ healthcare paid for by the state, convincing consumers to pay out of pocket for health products has historically been a tricky nut for startups to crack.
But with companies including body scanning company Neko Health and smart ring maker Oura raising big on the back of strong growth in recent times, investors tell Sifted they believe the market could be shifting.
“We are perfectly aligned with our launch plan and did our beta launch with successful results,” Sugar, which confirmed that it had raised new funds, tells Sifted.
Founded in 2023, Sümer previously pivoted Sugar’s focus from body scanning to blood testing, before settling on a health-based social media app. Sifted understands the startup aims to work with fitness providers to offer classes as part of its offering.
The startup began beta testing with 200 people in Germany in November 2023 and had plans to roll out the app to a wider group in the following months. Sugar did not share when it planned to launch a product to Sifted.
Rise of consumer health
Sümer’s entrance into the consumer healthtech market comes at what many see as a turning point for the sector.
“The consumer health space has been overlooked by investors,” said Marvin Amberg, founder of NaturalX Health Ventures, a new €100m VC arm of German pharmaceutical giant Schwabe Group, which is focused on early-stage consumer health startups.
“We see an inflection point in Europe now, as consumers are finally taking more charge of their own health.”
Finnish scaleup Oura, which raised $200m and hit a $5bn valuation late last year, told Sifted in December that it had sold 3m rings and expected to see annual revenues double in 2024 to roughly $500m.
Neko Health, which was founded by Spotify’s Daniel Ek in 2023, says it has 100k individuals on the waiting list for its body scanning service and expanded from Stockholm to London in 2024. It raised a $260m round in January this year as it geared up to launch in the US.
Read the orginal article: https://sifted.eu/articles/gorillas-founder-healthtech-raise-product-delays-news/
