British digital health startup Babylon Health, which went public in June 2021 at a $4.2 billion valuation, has filed for bankruptcy just over two years later.
One of its core assets, its U.K. telemedicine service, was sold for just $620,000 (£500,000) to U.S. digital health business eMed. The bankruptcy filing revealed that attempts to sell the entire business failed due to its debt burden and lack of cash reserves.
Shareholders were wiped out when the main lender, AlbaCore Capital, took control, and Babylon now owes AlbaCore a combined $380.5 million in loans.
The company's founder and CEO, Ali Parsa, had criticised the decision to go public via a SPAC deal, calling it an "unbelievable, unmitigated disaster." Babylon's financial troubles have led to layoffs and the closure of operations in the U.S. and Rwanda.
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