Babylon Health
AI-powered telehealth sounds revolutionary but healthcare is a low-margin, heavily regulated industry that resists disruption.
2013 → 2023
$1.2B
Healthcare/Telehealth
UK
IdeaProof AI Failure Score
What Happened: The Timeline
2013
Babylon Health founded by Ali Parsa in London
2019
NHS contract, expansion to Rwanda, Canada
2021
Goes public via SPAC at $4.2B valuation
2022
$573M net loss on $1.1B revenue
Aug 2023
Files for bankruptcy, assets sold at fraction of value
Root Causes
Babylon Health built an AI-powered telehealth platform used by the UK's NHS and expanded globally. After going public via SPAC in 2021, the company pursued aggressive growth through government contracts in multiple countries. But healthcare delivery has thin margins, and Babylon's tech didn't meaningfully reduce costs. The company reported revenue of $1.1B in 2022 but posted a $573M net loss. Babylon filed for bankruptcy in August 2023, with assets sold for a fraction of the $4.2B SPAC valuation.
Sources & References
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