Antonio Moraes, grandson of a late Brazilian billionaire, showed little interest in his family’s construction and banking conglomerate. Instead, after graduating from college, he launched one of Brazil's pioneering impact funds, focusing on companies improving healthcare access and affordability.
While pursuing his MBA at Stanford University, Moraes shifted his focus. He realized that rather than merely investing in impactful businesses, he wanted to create one himself. In an entrepreneurship class, he and co-founder James Wong, an engineering student, visited eyeglass factories in China. They found that designer frames, which cost up to $600 in the U.S., were made for only $10. “These markups felt unjustified,” Moraes told.
He highlighted the high cost of vision care, noting that despite having vision insurance, many employees face significant out-of-pocket expenses when purchasing glasses. "People assume insurance will cover everything but still end up with a $300 bill," Moraes explained.
In late 2018, Moraes and Wong founded XP Health. During the pandemic, the company transitioned to a digital-first model, leveraging AI to offer more affordable vision care, including eye exams and eyewear benefits, at a fraction of traditional insurance costs.
On Thursday, XP Health announced it raised $33.2 million in a Series B funding round led by QED Investors, alongside other investors such as Canvas Ventures and Valor Capital Group. This follows a $17.1 million Series A round less than two years ago.
According to Moraes, XP Health members purchasing glasses online can save up to 69% compared to retail prices. The company doesn’t mark up frames or lenses, which are sourced directly from factories, and generates revenue through recurring membership fees.
“In many cases, our members pay nothing for designer frames with premium lenses, as well as their eye exams,” Moraes said.
XP Health’s AI-driven platform even uses facial recognition to suggest frames that match the member’s facial structure and style. While customers can still purchase glasses from physical retailers at a discount, Moraes emphasized that similar frames are significantly cheaper on their platform.
In just two years, XP Health has grown from 30 business clients to over 3,000, including companies like Docusign, Navistar, and Chegg. The company has also partnered with insurance providers like Guardian Life Insurance to offer vision benefits to small businesses.
Despite the crowded market—featuring brands like Warby Parker, Eyebuydirect, and Zenni—Moraes claims XP Health is unique for challenging traditional vision insurance providers, particularly VSP and EyeMed Vision Care.
However, Moraes insists that XP Health isn’t an insurance company in the conventional sense. "There’s no real risk here,” he said. “It’s just a corporate benefit."
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