The digital behavioral-health-benefits platform Lyra Health announced today the closing of its Series E funding round worth $187 million.

The additional funds bring its total amount raised to more than $480 million and the company valuation to approximately $2.3 billion, according to a Lyra spokesperson.

The round was led by Addition and had participation from new investors Durable Capital Partners LP, Fidelity Management & Research Company and Baillie Gifford, along with other existing investors.

In addition to the capital raise, Lyra is also beginning a partnership with ICAS World, an employee-assistance-program provider. Through the collaboration, ICAS World’s client companies will be able to offer Lyra’s technology-enabled mental health solutions to their employees.

WHY THIS MATTERS

Lyra’s funding will be used to further support company growth as it seeks partnerships like its latest one with ICAS World.

"2020 put the need for mental health care transformation in sharp focus, as more people sought help during these extraordinary and difficult times," said David Ebersman, the CEO and cofounder of Lyra Health, in a statement.

"The traditional mental health care system cannot address the critical needs people have today. Lyra is now able to directly support more than 2 million members as we enable employers to offer their people easy, effective access to clinically proven mental health care. This latest financing round will allow Lyra to continue to develop new and innovative care solutions while reaching new customers and members."

By late June of last year, 40% of adults in the U.S. said they were struggling with mental health or substance use, according to the Centers for Disease Control and Prevention. The most commonly reported adverse mental health symptoms were for anxiety and depression (31%) and for trauma- and stressor-related disorders (26%).

Some of the most common stressors felt by employees during the pandemic are: fears about their own health and the health of their loved ones, the information overload caused by the media’s constant coverage, feelings of confinement, the stigma and social exclusion of becoming a confirmed patient, and financial loss and job insecurity, according to a report in Emerald Open Research.

To help employees mitigate negative outcomes to their mental health, the report suggests that workplaces develop a channel of clear communication about their organization’s business plans and for providing accurate and timely COVID-19 information, train their staff on how to work in new pandemic conditions, provide social support services and create a back-to-work plan.

THE LARGER TREND

This latest funding announcement comes off the heels of a massive funding year for Lyra Health. It first raised  $75 million in a Series C round in March and soon followed that up with a $110 million Series D raise in August.

The company also inked a deal with the stress and wellness app Calm last year to expand access to the app’s digital programs to Lyra’s client base.

Joining Lyra in the employer-based mental health space is Modern Health, which recently collected $51 million in a Series C round, and Unmind, which completed a $10 million Series A round last February.