A Bout Of Megadeals Signal The 2020 Boom For Digital Wellbeing Solutions Is Just The Beginning
Worker mental health and wellbeing has emerged as a key trend resulting from the disruption caused by the global pandemic. Workers are dealing with heightened stress levels, reduced colleague interaction, less separation between work and home life and job security concerns. The combination of these factors is taking its toll, according to a 2020 survey conducted by employment platform Monster, 69% of employees are experiencing burnout symptoms while working remotely. Clearly there is an amplified need to effectively manage the mental health and wellbeing of employees, but how is this being achieved in the remote working age?
In short, employers are turning to the digitization of wellbeing care. Providers of digital mental health and wellbeing solutions have witnessed an explosion in usage over the course of the pandemic. In April 2020 the top 10 US mental health apps generated 4 million downloads – a 17.6% increase over the number of downloads in January 2020, before the pandemic hit (see Verdantix Growing Mental Health App Market Presents Opportunities For EHS Software Providers). Mental health app solution, Ginger, has seen approximately 3x revenue growth over the past year as it expands its range of corporate clients. Ginger now provides mental health services to more than 500 employers including Fortune 100 firms. Digital musculoskeletal and physical therapy platform, Hinge Health, quadrupled its revenue in 2020, as customers required healthcare from home during the pandemic. Additionally, Lyra Health, a digital health technology platform, more than doubled its customer base to reach over 2 million members.
Digital mental health and wellbeing solutions have had a breakout year in 2020, but is growth dependant on the COVID-19 crisis? Investors don’t seem to think so. In the first quarter of 2021 alone there have been a flurry of megadeals as investors recognize the long-term growth opportunities for digital providers and the momentum surrounding mental health and wellbeing management. Following Hinge Health’s 2020 success, it has received $300 million in a Series D funding round in January, giving it a valuation of $3 billion. Meanwhile Lyra Health raised $187 million in January, Ginger raised $100 million in March and Happify Health also secured $73 million in March 2021.
To learn more about the digital mental health and wellbeing market, current product innovations and the capabilities of prominent solution providers, see our latest Smart Innovators: Digital Mental Health And Wellbeing Solutions report.