Spain-based Koa Health announced a USD $36.4 million Series A VC round for its mental wellbeing app. This brings its total raised to USD $53.5 million. Koa Health was spun out of the Telefonica Alpha “Moonshot Lab,” a sort of corporate incubator program. The Koa mental wellbeing app is provided to employers, healthcare providers, and insurers.
Mental wellbeing apps have been on the rise for several years and part of the overall employee wellbeing trend. The global pandemic has spurred on both increased adoption of mental wellness applications by employers that have increased its priority in light of the workforce’s mental stress and anxiety and increased the pace of global HR technology VC investment. In 2020 employee wellness saw $485 million of VC invested globally.
We expect to see more innovation and adoption in the mental wellbeing category of HR tech provided as both a part of the employee experience and as an employer provided elective benefit.