Ginger, a provider of on-demand mental health services through its app, raised $100 million in a Series E financing round led by funds managed by Blackstone Growth.
The latest round of investment will bring the company’s total funding to over $220 million to date. The company’s existing investors include Kaiser Permanente Ventures, Cigna Ventures, Bessemer Venture Partners, Advance Ventures Partners, Khosla Ventures, Health Velocity Capital, City Light Capital, and WP Global Partners.
Ginger plans to use the new funds to expand access to value-based mental healthcare through additional partnerships with multinational employers and health plans. In the first half of 2021, Ginger plans to extend its reach to support underserved populations through new government payer relationships and collaborations with non-profit organizations.
The COVID-19 pandemic has created a significant increase in demand for mental health support. According to Ginger’s report, 48% of employees reported high to extreme stress over the past year – a 7% increase over the last two years; at the same time, the number of employees who have used technology-based mental health support has increased significantly by 66%.
According to the company, over 200 companies, including Delta Air Lines, Sanofi, Chegg, Domino’s, SurveyMonkey, and Sephora, use its app to provide mental healthcare services to their employees.
Ginger is offered as an employer-sponsored benefit to more than 200,000 employees. It is also provided as an in-network benefit through its relationships with regional and national health plans, including Optum Behavioral Health, Anthem California, and Aetna Resources for Living.
“The past year demonstrated how employers, health plans, and investors are ready to double down on solutions that address the global mental health crisis,” said Russell Glass, CEO of Ginger. “With this round of funding, we will continue to advance our technology, further our research to improve outcomes, and expand care access within underserved populations.”
Telehealth companies secured a record $4.3 billion VC funding during 2020. The funding amount was a 140% increase in 2020, compared to $1.8 billion raised in 2019. Recently, Lyra Health, a provider of mental health benefits for employers, announced a Series E financing round of $187 million.