Headspace Health expands outside the U.S.

Headspace Health expands outside the U.S. unknown

Digital mental health company Headspace Health announced Tuesday it would begin offering its services to companies headquartered outside the U.S.

Headspace said it would start its international expansion in the U.K. and look to new markets throughout this year.

The company offers mental health and mindfulness products, including self-guided content, text-based coaching, therapy delivered in-person or virtually, and employee assistance services.

"People know and love Headspace, so it creates an approachable, engaging front door for individuals who can then access higher levels of care as needs arise. Expanding this complete capability into the U.K. today constitutes a major milestone in our journey toward transforming mental healthcare to improve the health and happiness of the world," CEO Russell Glass said in a statement.

THE LARGER TREND

Headspace Health was formed through the merger of meditation app Headspace and mental health company Ginger in 2021. Since the deal, the combined company has scooped up two other mental health-focused startups to boost its capabilities.

Early last year, the company said it had purchased Sayana, maker of AI-enabled mental health-tracking and sleep apps. In September, Headspace announced it acquired the Shine app, a mental wellness platform focused on culturally competent and inclusive offerings.

"Most of the acquisitions that we've made, both as a combined entity and some of the ones that we've made separately, fit the lens of either content that aligns with our core mission and helps to augment our reach from a self-serve mental health perspective, capabilities that bring new levels of tech — particularly around AI, conversation and community — and then talent," Leslie Witt, Headspace's chief product and design officer, told MobiHealthNews shortly after the latest deal was announced.

Mental health remains a popular clinical area for digital health startups, bringing in $2.1 billion in funding last year. However, according to Rock Health's investment report, funding overall slowed significantly in 2022. Experts say more consolidation could be coming in the space.

A number of digital health companies have also recently pursued layoffs. Late last year, Headspace confirmed it had laid off 4% of its workforce, about 50 employees. Competitor Calm cut 20% of its staff in the summer.