Bose Ventures leads $8.3m funding round in South African medtech company
hearX Group, an impact-driven scale-up with a mission to increase access to hearing healthcare through smart digital solutions, has completed a multi-million-dollar funding round led by Bose Ventures, the United States venture capital group within Bose Corporation.
HAVAÍC, who invests in and supports early-stage, high-growth African businesses, led the local funding round in South Africa, with co-investments from two other prominent institutional investors, Futuregrowth Asset Management and Sphere Holdings.
Bose Ventures invests in, and collaborates with, start-ups focused on technologies to help people live and feel better. Recognising the value that hearX and its suite of smart hearing technologies can bring to the world was a critical factor in Bose Ventures’ commitment to invest at the end of 2019.
Co-investors HAVAÍC contributed $1.3 million to the round. Futuregrowth, a fixed-interest asset manager backed by Old Mutual Investment Group in South Africa contributed $3 million through its Futuregrowth Development Equity Fund (DEF), and Sphere Holdings, an investment holding company contributed $1 million in this round, closing out the round in 2020.
Supplying disruptive, innovative digital technologies that support audiologists is central to the hearX global hearing care strategy. To expand its reach, the company is applying its audiological expertise to also offer a solution to a consumer market segment.
This investment has boosted the hearX launch of its premium, direct-to-consumer hearing aid solution, in the United States called Lexie Hearing. Using smart technology, Lexie offers a comprehensive and affordable developed hearing aid solution from as little as $39 over 24 months without compromising on quality. Consumers can enjoy the convenience of purchasing quality hearing aids online, program them from the comfort of their homes, and have access to hearing experts on-demand.
Founded out of the University of Pretoria in South Africa, hearX started trading in 2016 with the purpose of commercialising digital technologies to change the face of hearing care.
hearX initially focused on clinical digital audiometers, later branching out into lead generation tools for audiologists and retailers. Its latest offering includes an end-to-end hearing care solution that allows role-players in the hearing aid industry to compete in the direct-to-consumer and over-the-counter markets through the groundbreaking Lexie Hearing platform.
Says Amrish Narrandes, head of unlisted equity transactions at Futuregrowth, “We remain committed to our stance of backing entrepreneurs that are creating proudly South African products, services and IP and taking it to the rest of the world, thus raising the South African flag high. What we particularly liked about hearX is that it is disrupting the traditional hearing healthcare industry by democratising and decentralising access to hearing care.”
According to Memory Denalane, director at Sphere Holdings, “Sphere is excited to have invested in hearX, a business poised for considerable growth and global impact with its world-leading South African developed hearing technology, dynamic management team and solid investor base.”
When asked about working with Bose and how it will impact the hearX mission, CEO, Nic Klopper said, “Support from Bose Ventures will enable hearX to more aggressively tackle hearing loss and advance hearing care solutions. Our team has worked tirelessly to touch over 1.5 million lives globally, so an investment of this magnitude in hearX is tremendously rewarding and motivating for us all.”
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