Pelago Raises $58M in Series C Funding


Pelago, a NYC-based digital clinic partner to U.S. businesses and health plans for substance use management, raised $58M in Series C funding.

The round, which brought the total amount to $151M, was led by Atomico, with participation from all existing investors Kinnevik AB, Octopus Ventures, and Y Combinator plus new investors Eight Roads and GreyMatter Capital. As part of this latest round, Atomico Partner Laura Connell will join the Pelago board.

The company intends to use the funds to accelerate its product roadmap, extend its continuum of care and advance clinical research efforts.

Led by CEO Yusuf Sherwani, Pelago offers a solution that gives employers the means to offer on-demand, personalized support to workers seeking to live healthier lives. Pelago offers integrated substance use management to employer and health plan populations, with specialized treatment for tobacco, alcohol and opioid use disorders along with support for adolescents. Its cognitive behavioral therapy (CBT) and medication-assisted treatment (MAT) programs deliver support that integrates with health plans, pharmacy benefit managers and wellness platforms.

Commenting on the news, Yusuf Sherwani said: “We’re addressing a gap in the market left by employee assistance programs and mental health benefits providers who are unable to detect and treat substance use disorders. Customers are resonating with our solution as evidenced by a tenfold growth in revenue and eligible lives since our Series B two years ago.”