XP Health: The Startup Disrupting Vision Care with Affordable AI-Driven Solutions

Antonio Moraes, the grandson of a late influential Brazilian billionaire, always knew he wanted to carve his own path outside the family’s construction and banking conglomerate. After graduating from college, Moraes launched one of Brazil’s pioneering impact funds, which focused on investing in companies that made healthcare more accessible and affordable.

However, his time at Stanford University, where he earned a master’s degree in business administration and healthcare policy, led him to a different realization. Rather than just investing in impactful companies, he decided he wanted to build one himself.

As part of an entrepreneurship class, Moraes teamed up with James Wong, an engineering graduate student, and the pair visited multiple eyeglass manufacturing factories in China. There, they were struck by the stark difference between production costs and retail prices. "Designer frames that sell for up to $600 in the U.S. are made for just $10," Moraes noted. "We realized these markups were outrageous."

They also saw that while many people use vision insurance to help pay for eyewear, most insurance plans still left significant out-of-pocket expenses. "People expect insurance to cover the entire cost, but they often walk away from the optician with a $300 bill," Moraes explained.

Determined to make a change, Moraes and Wong founded XP Health in late 2018. Initially, their startup had a broad focus, but the onset of the pandemic prompted a shift toward a digital-first, AI-driven platform aimed at reducing the cost of vision care. XP Health now offers affordable eye exams and eyewear benefits that cost far less than traditional vision insurance plans.

Recently, XP Health secured $33.2 million in Series B funding, led by QED Investors, with participation from Canvas Ventures, American Family Ventures, HC9 Ventures, Valor Capital Group, and Manchester Story. This follows a $17.1 million Series A round less than two years earlier.

Moraes shared that customers using XP Health can save up to 69% on eyeglasses purchased virtually, as the company does not apply any markup on the frames or lenses, which are sourced directly from factories in Asia. Instead, XP Health’s revenue comes from recurring membership fees.

"In many cases, our members pay nothing for designer frames with top-quality lenses, and even the eye exam is included," Moraes said. XP Health uses AI-powered facial recognition to suggest glasses that match a member’s face shape and style, further personalizing the experience. Additionally, members can purchase glasses at discounted rates from physical retailers, but Moraes emphasized that the same frames could be two to three times cheaper when bought through the XP Health platform.

Over the past two years, the startup has seen rapid growth, expanding from 30 to over 3,000 business customers. Among them are companies like Docusign, Navistar, Chegg, and Sequoia Consulting, all offering XP Health’s services as a benefit to their employees. The company has also partnered with insurance providers, such as Guardian Life Insurance, to offer vision benefits to small businesses.

While the eyewear market is crowded with direct-to-consumer brands like Warby Parker, Eyebuydirect, Firmoo, Pair Eyewear, and Zenni, Moraes asserts that XP Health is unique in directly challenging the established vision insurance providers, VSP and EyeMed Vision Care. Unlike traditional insurance companies, Moraes points out, XP Health offers a corporate benefit rather than conventional insurance coverage. "There’s no real risk involved," he explained, "just a straightforward service."

XP Health’s innovative approach and rapid expansion suggest it could be well-positioned to disrupt a market long dominated by traditional players, making vision care more affordable and accessible for employees everywhere.