In a significant move within the telehealth sector, Bambu Ventures, through a Special Purpose Vehicle (SPV) in partnership with Innova Capital Partners, has agreed to acquire Lemonaid Health for $10 million from the bankrupt genetic testing giant 23andMe.
This acquisition, announced in September 2025, marks a new chapter for Lemonaid, a telemedicine platform 23andMe purchased for $400 million in 2021, highlighting a steep decline in valuation amid financial turmoil.
The Rise and Fall of 23andMe: A Backdrop to the Deal
The bankruptcy of 23andMe, once a pioneer in consumer DNA testing, has sent shockwaves through the biotech and health tech industries, culminating in the sale of key assets like Lemonaid Health.
Founded in 2006, 23andMe built a massive database of genetic information but faced mounting challenges, including a high-profile data breach in 2023 and declining consumer interest, leading to its Chapter 11 filing earlier in 2025.
Lemonaid Health: A Telehealth Asset with Potential
Lemonaid Health, known for offering virtual consultations and mental health services, was seen as a strategic addition to 23andMe’s portfolio, but it struggled to integrate fully under the parent company’s financial strain.
Bambu Ventures aims to revitalize the platform, betting on the growing demand for accessible telehealth services in a post-pandemic world where digital healthcare solutions are increasingly vital.
Impact on the Telehealth Industry
The acquisition underscores a broader trend of consolidation in the telehealth sector, as smaller or distressed assets are snapped up by investors seeking to capitalize on the market’s long-term growth potential.
For patients and providers, this deal could mean renewed investment in Lemonaid’s technology and services, potentially improving access to affordable care at a time when healthcare costs remain a pressing concern.
Looking Ahead: Challenges and Opportunities
However, Bambu Ventures faces significant challenges in rebuilding trust and market share for Lemonaid, especially given its association with 23andMe’s bankruptcy proceedings.
The future of telehealth hinges on regulatory clarity and consumer confidence, both of which could shape how Lemonaid evolves under its new ownership in the coming years.
As the deal awaits final approval from the U.S. Bankruptcy Court, industry watchers are keen to see if Bambu can turn around a once-promising platform that fell victim to broader corporate struggles.
For more details on the bankruptcy and related asset sales, refer to ongoing coverage at Bloomberg Law.
Maria Lourdes
