London-listed digital mental health platform Kooth has secured a £10m investment, with £3m coming from equity investor BGF.
Founded in 2001, the online platform provides services such as messaging, live counselling and support forums. Users on the platform are anonymous.
The health tech company will use the cash injection to hire in the US following a contract win with the California Department of Health Care Services.
It will see Kooth offer its service to six million people aged 13-25 in a deal worth over $188m (£148.8m) across four years.
Simon Blackaby, investor at BGF, said: “Kooth is a great example of a high-quality business with a proven business model, a significant recurring revenue stream and now international growth potential.”
Kooth’s chief executive Tim Barker said that in addition to BGF becoming a shareholder, the investment firm would provide access to its “network and support”.
“With further traction now seen in the US platform, Kooth is well positioned to continue to its international growth,” Barker said.
Kooth was first listed on the London Stock Exchange’s AIM market in 2020. It has a market capitalisation of £116.47m.
BGF’s £3m investment into Kooth means it has now deployed more than £50m in UK-listed companies this year.
It’s also the second health company the investor has backed in the past week, with BGF providing £8.25m for Leeds-based “tech-enabled” physiotherapy and podiatry service Primary Care Physio.