- On-demand mental health company Ginger recently announced it raised $100 million in Series E funding. These are the details.
On-demand mental health company Ginger recently announced it raised $100 million in Series E funding led by funds managed by Blackstone Growth. And this latest round of investment will bring the company’s total funding to over $220 million on the heels of about 3x revenue growth over the past year.
More than 10 million people have access to Ginger in over 40 countries around the world through the company’s partnerships with innovative employers, health plans, and strategic partners. And now over 500 employers ranging from startups to Fortune 100s, including ViacomCBS, Delta Air Lines, Domino’s, SurveyMonkey, Axon, 10x Genomics, and Sephora, partner with Ginger to cost-efficiently provide employees with high-quality mental healthcare. Plus the company also works with strategic partners like Accolade and Capsule, and 30 integrated health systems and health plans.
Last year, Ginger had introduced a value-based model that allows employers to offer every eligible employee and adult dependent access to Ginger’s entire spectrum of care for a fixed fee, including unlimited self-guided care, 24/7 on-demand behavioral health coaching, and a predetermined number of therapy and psychiatry sessions. And over the past year, nearly 60% of Ginger’s new clients have adopted this option for their employees, demonstrating a significant desire for value-based models in mental healthcare.
With this latest round of funding, Ginger is planning to continue expanding access to value-based mental healthcare through additional partnerships with multinational employers and health plans. In the first half of the year, the company plans to extend its reach to support underserved populations through new government payer relationships and collaborations with non-profit organizations. And in addition, this funding will enable Ginger to continue its acquisition of innovative technologies and clinical services to improve and scale its on-demand mental health system.
The COVID-19 pandemic created a significant increase in demand for mental health support. And according to Ginger’s Third Annual Workforce Attitudes Toward Mental Health Report, 48% of employees report experiencing high to extreme stress over the past year: a 7% increase over the last two years. And at the same time, the number of employees who have used technology-based mental health support has increased significantly by 66%. Ginger addressed this skyrocketing need over the past year, having:
1.) Published the results of 2 peer-reviewed studies in JMIR, showcasing the success of its collaborative care system in reducing symptoms of anxiety and depression among Ginger’s employer client populations.
2.) Increased the number of people with access to Ginger to more than 10 million with demand reaching as high as 3x pre-pandemic levels.
3.) Doubled Ginger enrollment rates across its employer client base. And Ginger’s average sign-up rate is over 2x the national average for employee assistance programs (EAPs).
Ginger also announced the appointment of Jesse Silver as Chief Product Officer. And Silver will lead the advancement of Ginger’s member and clinician experiences, including the Ginger member app; the Ginger Care Hub, a proprietary EMR for Ginger’s coaches, therapists, and psychiatrists; and various integrations across the healthcare ecosystem to improve care access. Plus Silver has served as VP of Product at Omada Health, led design work at IDEO, and most recently was SVP of Product at PAX Labs.
As part of this funding round, Ginger added Blackstone’s Ram Jagannath to its Board of Directors. Blackstone is joining existing investors from Kaiser Permanente Ventures, Cigna Ventures, Bessemer Venture Partners, Advance Ventures Partners, Khosla Ventures, Health Velocity Capital, City Light Capital, and WP Global Partners.
Over the past year, Ginger nearly tripled its employee base and expanded its team of behavioral health coaches, clinicians, engineers, and operational leaders. And the company has invested heavily in creating a team of providers that can meet members’ needs equitably and with compassion; over 70% of Ginger’s employees identify as female, and nearly 50% of Ginger’s coaches, therapists, and psychiatrists identify as BIPOC (compared to the American Psychological Association average of 15%).
KEY QUOTES:
“The past year demonstrated how employers, health plans, and investors are ready to double down on solutions that address the global mental health crisis. 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.”
— Russell Glass, CEO of Ginger
“We’re proud to invest in Ginger, whose mission to expand access to high-quality mental healthcare through innovative technological solutions is only becoming more important. The company’s exceptional team has built a world-class, scalable care model that benefits individuals, employers, and payers – and we’re excited to partner with them moving forward.”
— Ram Jagannath, Global Head of Healthcare for Blackstone Growth and Blackstone Tactical Opportunities
