Japan-based health management platform operator iCare secured ¥1.9bn ($16.5m) in a series E round featuring enterprise software provider Salesforce and insurer Mitsui Sumitomo Insurance as telecommuting becomes more widespread in its home country.
Incubate Fund led the round, which included fellow venture capital firm Global Brain and debt supplied by unnamed financial institutions, taking the company’s total funding to $38m. The corporate investors were represented by Salesforce Ventures and Mitsui Sumitomo Insurance Venture Capital (MSIVC) respectively.
Founded in 2011, iCare has built an online healthcare tool dubbed Carely, to help organisations manage their employees’ mental and physical well-being. The platform combines an automated chat service with iCare’s licensed care professionals including doctors and nurses that check workers’ physical conditions, stress levels and workload management.
Some 500 local companies were registered on Carely as of last month, and the number of accounts on the platform has grown at a compound annual growth rate of 121% since its launch, according to iCare.
The company launched a big data-focused healthcare consulting service in 2020 that has led to multiple enterprise customers with over 10,000 employees signing up to the platform, contributing to the rapid increase in the number of accounts.
According to a white paper on measures to prevent karōshi – Japanese deaths caused by overwork – compiled by Japan’s Ministry of Health, Labour and Welfare in 2020, some 18.3% of Japanese workers spend 49 hours or more per week at work, the highest proportion of any developed nation.
Meanwhile, the Japan Productivity Centre’s international comparison of labour productivity report in 2021 showed the country’s productivity reached its lowest point that year, having consistently been at the bottom of the ranking for Group of Seven nations since records began in 1970.
Takuya Hosomura, a principal at Salesforce Ventures, said: “New ways of working such as remote office setups are becoming more commonplace due to the covid-19 pandemic, but it is becoming harder for companies to identify employees facing mental health struggles, and workers are also finding it more difficult to maintain and improve their physical and mental health due to changes in their lifestyles.
“From a workforce recruitment and retention perspective, it will be increasingly important for companies to understand their employees’ physical and mental health conditions in real time and to give timely support. We are delighted to continue to support iCare in meeting the challenges of corporate health management.” (Translated from Japanese by Global Corporate Venturing)
Masayuki Shiramatsu, a principal at MSIVC, added: “This is our third investment in iCare’s Carely platform, which has grown steadily since our participation in its May 2019 and December 2020 rounds. With this funding, we are confident that Carely will be able to contribute to the improvement of the health of an even greater number of people.
“Behind the digital health monitoring system is the passion of CEO Yōta Yamada and all his employees to build a society in which everyone can work in good health, and we hope to help their passion come to fruition.” (Translated from Japanese by GCV)
JIC Venture Growth Investments led the December 2020 series D round, in which iCare raised $14.4m from investors also including Salesforce Ventures, MSIVC and Sony Financial Ventures (SFV GB), a joint vehicle between conglomerate Sony’s Financial Group unit and Global Brain, as well as SMBC Venture Capital (SMBCVC), part of financial services firm Sumitomo Mitsui Banking Corporation.
MSIVC, SMBCVC, SFV GB and Incubate Fund had already backed a $4.8m round in 2019 that included Mizuho Capital, a subsidiary of financial services firm Mizuho Bank, and Beyond Next Ventures, increasing iCare’s overall funding to $7.9m.
The company had already secured $1.4m in a 2018 round featuring Mizuho Capital, SMBCVC, Beyond Next Ventures and Incubate Fund, the last of which had provided $880,000 two years before.
Image courtesy of iCare Co, Ltd.
