Lyra Health, a mental health benefits provider for employees, raised $235 million in new financing and bought ICAS World, according to a news release Wednesday.
Dragoneer Investment Group led the funding round, with additional investment from Coatue and Salesforce Ventures. Moreover, Lyra’s acquisition of ICAS World gives the digital health unicorn an established network of mental health providers in 155 countries delivering care in 66 languages.
The latest moves should help Lyra quickly grow its business internationally.
“Meeting the diverse needs of people around the world requires approaches that are evidence-based and culturally responsive. We founded Lyra to redefine access to high-quality mental health care for millions of people. Adding ICAS and its localized services in 155 countries is a transformational step as we strive to become the global leader in mental health care and the gold standard for providing fast access to the highest quality care,” Lyra Health CEO David Ebersman said in a news release.
Investors are pouring money into digital mental health startups, hoping to cash in on the unprecedented demand for mental health services fueled by a lack of access to care and a never-ending pandemic. More than 11% of U.S. adults aged 18 or older have regular feelings of worry, nervousness or anxiety, according to the Centers for Disease Control and Prevention. Nearly 5% have regular feelings of depression.
Mergers and acquisitions reached an all-time high in digital health in 2021, with 263 transactions, according to data from Digital Health Business & Technology. There were just 184 M&A deals in 2020.