Lyra Health gets $235M, soars to $5.58B valuation with new acquisition for global expansion

EDITOR'S NOTE: This story has been updated to reflect Lyra Health's valuation based on corrected information provided by the company.

Employer-focused Lyra Health snagged $235 million in series G funding, sending the health tech unicorn’s valuation to $5.58 billion as the company focuses its efforts on global expansion.

The Burlingame, California-based company, which provides an array of in-person and virtual behavioral health benefits to more than 75 leading companies—including Amgen, Uber and Morgan Stanley—has raised $915 million to date.

Dragoneer led the round, joined by Salesforce Ventures and existing investor Coatue Management.

The fresh capital will allow Lyra to accelerate its operations to respond to growing demand worldwide for accessible and comprehensive mental health services.

"I've known David for over 10 years, and his focus on one of the world's most important topics, addressing and solving mental health care, is truly inspiring," said Marc Stad, founder and managing Partner at Dragoneer, in a statement, speaking of Lyra’s CEO and co-founder David Ebersman.

"Mental health issues are much more pervasive than is commonly known, and Lyra is thoughtfully redefining access to care by providing broad-based solutions through employers. With this additional capital, Lyra will have the opportunity to further distinguish itself as the leader in mental health domestically and expand internationally to address a global need," Stad said.

Lyra previously reported its valuation had jumped to $4.6 billion after grabbing $200 million in its June series E round.

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The unicorn also announced Thursday that it had acquired ICAS World, an employee assistance program provider operating in more than 155 countries.

The acquisition allows the company to provide culturally responsive care, including services for preventive care, mental health coaching, therapy and medication, on a single platform to more than 10 million global members, Lyra Health said.

Prior to the acquisition, Lyra covered than 2.2 million members globally.

The company first launched a partnership with ICAS in January 2021. 

“Leading companies understand the immediate, critical need to provide effective mental health care for their employees and their families,” said Ebersman in a statement. “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.”

RELATED: Lyra Health expands services to tackle alcohol use disorder, complex mental health issues

Lyra offers evidence-based care across a range of mental health concerns, including more serious issues like alcohol use disorder and suicidality, with programs for those conditions announced last September and expected to roll out in early 2022.

The new offerings add to the company’s existing care options and specialist network, offering accessible treatment for conditions often riddled with stigma.

In 2020, approximately one in five U.S. adults experienced mental illness, according to the National Alliance on Mental Illness.