Korean startup Atommerce raises $16.7mln in Series B funding

With the recent funding, Atommerce plans to enhance artificial intelligence and machine learning technology for its platform and invest in digital therapeutics specialized in mental illness

Atommerce, a Korean startup that helps users connect with mental health professionals via a mobile app MiNDCAFE, plans to scale its service for growth with a $16.7 million Series B funding, which was three times oversubscribed within two months.

With the recent funding, Atommerce plans to enhance artificial intelligence and machine learning technology for its platform and invest in digital therapeutics specialized in mental illness.

In addition, the proceeds will be used to increase its headcount.

The Seoul-based startup offers a virtual therapy program and a mental health benefits solution for employers. CEO Kyu-Tae Kim told TechCrunch that Atommerce wants to build an ecosystem where patients, human experts, and artificial intelligence interact to address mental illness by adding the AI chatbot service capable of giving therapy just like a human expert.

The company’s AI chatbot RONI, which was launched in December, supports human professionals by providing recommended answers, Kim said.

Atommerce claims more than 1 million app users in South Korea and 100 enterprises clients, including Naver, NHN, Shinhan Investment, Neowiz and Seoul Metropolitan Government. About 200,000 employees of its B2B clients are currently using its app through MiNDCAFE’s employee assistance program (EAP). The company says it has more than 250 mental health specialists.

The COVID-19 pandemic accelerated the company’s growth. For instance, its revenue in the first quarter of 2021 grew about 1200% compared to Q1 2020. The company also says its sales have increased by an average of 400% annually for the last two years.

The latest round brings the company’s total amount of funding to almost $26 million. The Series B was led by Hashed, with participation from E&Investment, K2 Investment, and Samsung Next. Existing backers Insight Equity Partners and Korean pharma company GC Green Cross Holdings also participated in the round.

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