South African medtech disruptor hearX Group, with Futuregrowth as its largest South African institutional investor, has merged with US-based hearing aid manufacturer Eargo to form a new hearing health company, LXE Hearing. The merger is supported by an additional $100 million investment from Patient Square Capital (PSC).
This marks the first major merger in the over-the-counter (OTC) hearing aid space since the FDA introduced the regulatory category in 2022. The newly formed LXE Hearing aims to redefine non-prescription hearing care in the US through greater accessibility, affordability, and convenience.
Founded in 2016 by academics in Pretoria, hearX continues to operate from South Africa. Futuregrowth recognised early on the company’s unique combination of world-class innovation and a highly skilled team with deep expertise in audiology, engineering, and technology.
The group launched its product Lexie Hearing in the US in 2020, with the aim of providing individuals with disabling hearing loss access to affordable and accessible hearing aids. Lexie is disrupting the market through its advanced technology, disruptive pricing, and behavioural change-driven model.
According to the World Health Organisation, hearing loss is one of the most prevalent health conditions globally, with 466 million people living with permanent disabling hearing loss. Roughly one-third of people over the age of 65 are affected, with the highest prevalence in South Asia, the Asia-Pacific region, and sub-Saharan Africa.
hearX CEO, Nic Klopper, says: “The capital injection from PSC and merging the strengths of Eargo’s invisible hardware expertise with Lexie’s award-winning mobile platform really sets us up to be the clear winner in consumer hearing care. Futuregrowth has been an invaluable shareholder and supporter of our growth along the way.”
Amrish Narrandes, Head of Futuregrowth’s Private Equity & Venture Capital, adds: “What we particularly liked about hearX is that it met – and far exceeded – the criteria of our Fund. hearX has developed world-class solutions right here in South Africa and is now delivering them to almost 40 countries. We’re incredibly excited about this merger and what it means for expanding access to hearing care globally. This deal reflects our ongoing commitment to backing entrepreneurs who are building proudly South African products and IP with real global impact – raising the South African flag high in the process.”
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