Caraway, a New York-based company focused on delivering comprehensive health services to Gen Z women, has made an exciting move by acquiring Sesh, a digital group therapy platform. This acquisition, which was finalized earlier this month, will allow Caraway to integrate digital group therapy for women into its existing portfolio of services, providing users with an additional, important modality of mental health care. As Caraway continues to broaden its reach and improve its services, the inclusion of group therapy will help address the diverse needs of its growing customer base.
Caraway’s CEO and co-founder, Lori Evans Bernstein, shared that the decision to acquire Sesh was driven by the company’s commitment to creating a holistic health model that emphasizes both mental and physical well-being. “Groups offer another level of community and connection for participants, as places where people can connect with others with similar identities and struggles,” Bernstein explained. This collaborative environment has the potential to significantly enhance mental health support, particularly for individuals who may feel isolated or misunderstood. By bringing people together who are navigating similar experiences, digital group therapy for women creates a sense of solidarity that is often missing from more individualized care.
While Caraway already offers services related to mental health, sexual health, and reproductive care through its app, the integration of digital group therapy gives its users the opportunity to engage in deeper, shared learning experiences. According to Bernstein, the benefits of group therapy go beyond simply being able to talk to others in similar situations. She points out that, “We also know that sharing identities and experiences is particularly helpful for underserved and underrepresented populations, including women and assigned female at birth (AFAB) people.” For these groups, finding a safe, supportive space to open up about their experiences is crucial. It fosters a sense of belonging that can significantly aid in their healing process.
Caraway’s digital platform enables users to access mental health support through a variety of convenient means, including chat, phone, and video consultations with licensed clinicians. For certain services that require in-person care, such as physical exams, IUD placements, and pap smears, Caraway facilitates referrals to trusted in-person providers, ensuring users still receive the care they need, along with follow-up guidance and assistance in understanding insurance requirements. By expanding its offerings to include digital group therapy for women, Caraway aims to offer even more flexibility for those seeking a support system tailored to their personal preferences.
Sesh, the platform now under Caraway’s umbrella, is known for providing digital group therapy led by licensed therapists. These sessions cover a wide range of topics that resonate with many, such as mental health struggles like depression, anxiety, and stress, as well as career-related challenges. By offering therapy in a group format, Sesh fosters an environment where individuals can discuss their issues openly, share coping strategies, and learn from one another’s experiences. This model aligns seamlessly with Caraway’s vision of providing accessible, holistic mental health care, reinforcing the company’s mission to cater to Gen Z women in a way that speaks to their unique needs.
This acquisition is not Caraway’s only recent success. In June, the company raised an impressive $16.75 million in Series A funding, led by investors Maveron and GV. The funding will help Caraway expand its services and reach even more people across the country. Along with the new partnership with Sesh, Caraway has also secured investment from Polaris Partners and ARCH Venture Partners, further solidifying its position in the mental health space. Caraway is currently providing services in multiple states, including California, Colorado, Illinois, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, and Pennsylvania.
Despite the momentum in digital behavioral health funding in recent years, the consolidation of the sector has been slower than expected. However, industry experts like Michael Yang, managing partner at OMERS Ventures, have long anticipated this trend, believing that consolidation is an inevitable step in the growth of digital mental health care. The acquisition of Sesh by Caraway is an early indicator of this trend taking shape, as it demonstrates a growing interest in bringing together different care modalities to better meet the evolving demands of patients. Other notable mergers and acquisitions in the space include digital therapeutics company Big Health’s acquisition of teen-focused mental health platform Limbix in August, and the merger of BehaVR and OxfordVR in December.
Caraway’s acquisition of Sesh highlights a significant shift in how digital health companies are approaching mental health care. By integrating digital group therapy for women, Caraway is offering a comprehensive and diverse set of options for users, allowing them to receive care in the way that best suits their needs. For those who may prefer group dynamics to one-on-one care, the acquisition opens up new avenues for connection and growth. It’s a strategic move that not only benefits Caraway’s users but also positions the company to continue leading the way in the digital health space, offering innovative, accessible, and personalized care to a generation that increasingly seeks mental health support online.
4o mini
