Elder to raise cash as app looks to crack care at home market
The firm’s model works by matching its army of 3,000 self-employed carers to families in need of care.
Elder, an app that connects vulnerable elderly people with healthcare professionals, is seeking its next round of funding as the firm looks to scale up and reach £1 billion of sales.
The Shoreditch-based company has already raised £10 million since it was founded in 2015 and is in talks with investors about another round this year.
Chief executive and founder Pete Dowds told the Press Association: “We’re loss-making at the moment, like many start-ups, but we’re targeting £1 billion of sales.
“Elderly care is a £19 billion market and it’s growing, helped by an ageing demographic and care-home closures.
“Care homes have been seen as the default option, but the big homes are struggling and we provide a tech solution to help deliver care in people’s own homes.”
The traditional care home model has come under scrutiny in recent years, with the failure of Southern Cross and Four Seasons falling into the clutches of its lenders.
Elder’s model works by matching its army of 3,000 self-employed carers to families in need of care, which is then provided at home.
It charges a flat fee of £795 per week for personal care, 80% of which goes to the carer, and claims to be the third fastest growing company in the UK by revenue.
In 2015, Elder secured £1 million in funding from Hummingbird Ventures and then two year later banked £9 million from MMC.
Mr Dowds, who is best known for co-founding cleaning business Mopp in 2013 before selling it for millions, is also setting his sights on a stock market flotation.
“An IPO for Elder would be something that we would look to do, as it would provide liquidity for shareholders.”