Digital physical therapy firm readies New York IPO
California-based firm valued at $6.2 billion in 2021 funding round
Morgan Stanley, Barclays and BofA Securities tapped as lead underwriters
Adds background on company and IPO market in paragraphs 5-6, 10
March 10 (Reuters) - Hinge Health, which provides digital exercise therapy programs to help people manage and overcome muscle and joint pain, on Monday filed for its long-sought New York initial public offering.
The San Francisco, California-based company, which was valued at $6.2 billion in a 2021 funding round, reported a 33.4% increase in revenue for 2024 and a reduction in net losses, according to its IPO paperwork.
Hinge Health, along with some of its existing shareholders, plans to sell shares in this proposed offering. It had earlier planned to go public in 2022.
The IPO comes despite recent stock market volatility due to uncertainty around U.S. trade policies and adds to the growing momentum for healthcare listings.
Healthcare IPOs on U.S. exchanges raised $7.1 billion in 2024, compared with $2.8 billion a year earlier, according to data compiled by LSEG.
Increasingly sedentary lifestyle and an aging population in the U.S. are expected to boost the demand for physical therapy in coming years.
Revenue rose to $390.4 million in 2024, compared with $292.7 million a year earlier, while net losses shrunk to $11.9 million in the same period from $108.1 million a year earlier.
Founded in 2014 by Daniel Perez and Gabriel Mecklenburg, Hinge Health's platform provides comprehensive musculoskeletal care ranging from acute injury treatment to chronic pain management and post-surgical rehabilitation.
Hinge Health competes against Kaia Health Software, Omada Health, Sword Health Technologies and Vori Health. The company caters to employers such as ride-hailing company Lyft LYFT.O, retailer Target TGT.N, and automaker GM GM.N.
It raised $400 million in 2021 funding round led by investment firms Tiger Global and Coatue Management.
Other major shareholders include venture capital firm Insight Venture Partners, Atomico, 11.2 Capital, and Bessemer Venture Partners.
Morgan Stanley, Barclays and BofA Securities are the lead underwriters for the offering.
Hinge Health, which has tapped 14 banks for the IPO, will list on the New York Stock Exchange under the symbol "HNGE."
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid)
((ArasuKannagi.Basil@thomsonreuters.com;))
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