Pelago

What Pelago does

Pelago is a virtual-first digital clinic providing specialty substance use care for tobacco, alcohol, opioid, cannabis, and stimulant use disorders among adults and adolescents. Founded in 2017 and headquartered in New York City, the company combines a mobile app, cognitive behavioral therapy (CBT) content library, at-home remote monitoring devices (breathalyzers, urinary test kits, carbon monoxide monitors), and medication-assisted treatment (MAT) through its PelagoRX pharmacy integration, layered with live clinical support from physicians, nurses, coaches, and counselors. The platform offers same-day nationwide access, 24/7 availability, and confidential care, and operates a Centers of Excellence network of vetted inpatient facilities (RCA, Banyan) for higher-acuity needs. Pelago has accumulated 15 peer-reviewed publications and an independent Aon analysis of three years of claims data showing $11,829 in annual medical cost savings per member and a 5:1 ROI.

The technology stack includes AI-powered ambient clinical documentation integrated with EHR systems via AWS Amazon Connect Health, an automated care-pathway engine, and a personalization layer that adapts CBT content and interventions to member progress. Compliance posture covers HITRUST CSF, SOC 3, and HIPAA-aligned controls, which support enterprise and health-plan procurement. The company does not sell directly to consumers; access is gated by employer or health-plan eligibility, and pricing is utilization-based, quote-based, and contracted on a PEPM/PMPM or value basis, typically multi-year.

Pelago distributes exclusively through B2B channels: direct enterprise sales to self-insured employers, health-plan and PBM partnerships (Express Scripts Digital Health formulary listing, regional Blue and non-Blue plans, benefits consultants), and specialty-care platform integrations (Lantern). Reported customers span healthcare (Beacon Health System, Vitality, Evry Health), energy/utilities (Southern Company), entertainment (Live Nation), and industrial conglomerates (Philips, GE Appliances). To date, Pelago has raised approximately $151.6 million across multiple venture rounds, the most recent being a $58 million Series C led by Atomico in March 2024. The company is venture-backed, privately held, and led by CEO and co-founder Yusuf Sherwani alongside COO Maroof Ahmed, co-founder Sarim Siddiqui, President Frank Jennings, CSO Dr. Suzette Glasner, and CFO Patrick Leonard.

Name

Pelago

Legal name

Pelago

Website

https://pelagohealth.com

Company type

Private

Founded year

2017

Operating status

Operating

Headcount range

101–250 employees

Short description

Pelago is a New York-based virtual-first clinic delivering specialty substance use care (alcohol, tobacco, opioids, cannabis, stimulants) to adults and adolescents via self-insured employers, health plans, and PBMs. It combines CBT content, remote monitoring, medication-assisted treatment, and live clinical support under a recurring PEPM/PMPM contract model.

Ownership category

akta.pro rank

Product category

Substance Use Treatment

NAICS

Outpatient Mental Health and Substance Abuse Centers (621420), Offices of Physicians, Mental Health Specialists (621112)

SIC

Services-Offices & Clinics Of Doctors Of Medicine (8011)

akta.pro primary industry

Behavioral Health-Integrated Chronic Care (SUD comorbidity, collaborative care) (HLALAFAK)

akta.pro secondary industries

Controlled-Substance & High-Risk Medication Teleprescribing Platforms (compliance-focused) (HLALAIAM), Behavioral Health & Substance Use Remote Monitoring (HLACAFAD), Pharmacy/Medication Management & Virtual MTM (Payer-Sponsored) (HLALACAK)

Keywords

• Substance use treatment
• Virtual addiction care
• Digital health clinic
• Medication-assisted treatment
• Behavioral telehealth

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Employer Benefits Subscription: Pelago is offered as an employee benefit through self-insured employers. Pricing is utilization-based and aligned with value delivered, with quotes based on organization size. Employers pay per-employee-per-month or per-eligible-member fees for access to the substance use management program.
2. Health Plan/Insurer Contracts: Pelago partners with national health plans, regional Blue plans, and PBMs to provide substance use treatment as a covered benefit. Revenue comes from negotiated per-member-per-month fees or value-based contracts with demonstrated ROI.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels6 records

Core offering

Pelago operates a virtual-first digital clinic that delivers specialty substance use care for tobacco, alcohol, opioid, cannabis, and stimulant use disorders. The platform combines digital tools (CBT modules, tracking, craving management), live clinical support (physicians, nurses, coaches, counselors), medication-assisted treatment via PelagoRX, and at-home remote monitoring devices (breathalyzers, urinary test kits, CO monitors). Services are offered to members as an employee benefit through self-insured employers or as a covered benefit through health plans and PBMs, with same-day nationwide access and 24/7 availability.

Product overview

Pelago operates as a unified virtual clinic platform for specialty substance use care, offering distinct treatment programs for five substance categories (alcohol, tobacco, opioids, cannabis, and stimulants) as a single integrated product. The platform combines a digital-first experience with live clinical support, featuring core components including PelagoRX for medication-assisted treatment, Remote Monitoring via at-home devices, and Contingency Management for behavioral incentives. Separate tracks serve employers, health plans, adolescents, and individuals, while the Aon Cost Efficiency Measurement tool provides ROI validation. All programs share common infrastructure including CBT content libraries, dedicated care teams, and progress tracking, unified under one member experience.

Differentiator

Problem solved

Functional benefit

Brands

• PelagoRX: A members' hub for medication-assisted treatment (MAT), offering confidential prescriptions and a straightforward integration with pharmacy partners.

Products and services

• Pelago Virtual Substance Use Clinic A virtual-first specialty substance use clinic providing personalized, evidence-based treatment for tobacco, alcohol, opioid, cannabis, and stimulant use disorders, combining digital tools with live clinical support from physicians, nurses, coaches, and counselors. Sold to self-insured employers, health plans, and PBMs as a covered benefit for their members.
• Alcohol Use Program Virtual clinic for alcohol use offering personalized support for binge drinking and alcohol use disorders, featuring CBT content, breathalyzer devices, dedicated counselors, and naltrexone prescriptions. Members reduce alcohol use by 62% within 30 days on the program.
• Tobacco Cessation Program Purpose-built virtual tobacco cessation program for smoking, smokeless tobacco, and vaping, featuring CBT content, nicotine replacement therapy, and connected devices for carbon monoxide monitoring. 44% of members report no tobacco use within 12 months; 52% biochemically-verified quit rate at 28 days.
• Opioid Use Program Virtual clinic for opioid use addressing fentanyl, prescription opioid, and heroin use, offering 1:1 psychological therapy, CBT content, at-home urine testing, and suboxone (buprenorphine/naloxone) delivery. 67% of members are opioid-free for at least three months after starting treatment.
• Cannabis Use Disorder Program Virtual treatment program for cannabis use disorder featuring dedicated care teams, CBT, motivational interviewing, and personalized tracking to address problematic cannabis use. Addresses the fact that 40% of adult SUDs and 60% of adolescent SUDs are linked to cannabis.
• Stimulant Use Disorder Program Virtual treatment for stimulant use disorder featuring personalized care models, CBT content, contingency management incentives, and integrated care team access for coaching, counseling, and prescribing. Addresses a population of 9 million people reporting stimulant use in the past year.
• Adolescent Substance Use Program Specialized substance use management program for adolescents featuring science-based screening tools, strict clinical guidelines, tailored consent protocols, and family support components. Addresses the unique needs of teen members struggling with substance use.

Quantifiable outcome

• 62% reduction in alcohol use within 30 days
• +9 more outcomes

Named customers8 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability5 records

Feature5 records

Partnerships

Five partnerships are on record, tiered core and minor.

• Amazon Web Services (AWS)coreTechnology or Integration · 5 March 2026Pelago is integrated with Amazon Connect Health, AWS's agentic AI solution for healthcare. Pelago reports measurable outcomes including over a million ambient documentation visits, 275% adoption increase, and hundreds of clinician hours reclaimed monthly through the AWS-powered solution.
• LanterncoreStrategic or Co-development Partner · 27 January 2025Lantern, a Dallas-based specialty care platform, launched an exclusive partnership with Pelago enabling Lantern's employer and health plan clients to access Pelago's substance use disorder treatment services. The partnership addresses a market of 49 million U.S. adult workers battling substance use disorders, with Pelago offering care teams, medication-assisted treatment, and vetted inpatient facilities.
• RCA (Recovery Centers of America)minorStrategic or Co-development PartnerRCA is one of the clinically vetted inpatient treatment facilities that Pelago coordinates with for members who need additional expert support. Care is transitioned back to Pelago after discharge from RCA facilities.
• BanyanminorStrategic or Co-development PartnerBanyan is one of the clinically vetted inpatient treatment facilities in Pelago's Centers of Excellence network. Members have access to high-quality, clinically vetted inpatient treatment with care coordination and transition back to Pelago after discharge.
• Express ScriptscoreChannel Partner/ Reseller/ DistributorPelago is featured on the Express Scripts Digital Health formulary, which offers rigorously evaluated digital health solutions in combination with support from Express Scripts specialist pharmacists. This helps health plans navigate digital health solutions and delivers average plan savings of more than $120,000 per digital solution.

Scale indicators10 records

Recent moves6 records

Expansion highlights6 records

Others

• Hazelden Betty Ford Foundation: Hazelden Betty Ford is a leading nonprofit addiction treatment provider with residential, outpatient, and digital programs. Indirect comparator as a major SUD care brand that increasingly partners with virtual providers like Pelago and represents the traditional care standard Pelago aims to displace.

Broad incumbents

• Spring Health: Spring Health is a comprehensive mental health benefits platform for employers offering therapy, coaching, medication management, and SUD support. Broader incumbent that bundles SUD into a wider mental health offering, competing for the same employer benefits wallet.
• Modern Health: Modern Health is a global mental health platform offering therapy, coaching, and digital self-serve tools to employers. Broader incumbent competing with Pelago for mental health/SUD benefits allocations across mid-market and enterprise.
• Talkspace: Talkspace is an online therapy platform serving employers, health plans, and individuals. Broader incumbent in the virtual behavioral health category, increasingly expanding into substance use support that overlaps with Pelago's offering.
• Lyra Health: Lyra Health is an enterprise mental health benefits platform providing therapy, coaching, and medication management to global employers. Broader incumbent whose expanding SUD services compete with Pelago for employer benefits budget.

Direct peers

• Lionrock Recovery: Lionrock Recovery delivers online counseling and group therapy for substance use disorders via telehealth. Direct peer in virtual SUD treatment delivery, particularly the teletherapy layer that complements Pelago's clinical offering.
• Ophelia: Ophelia is a virtual opioid use disorder treatment provider offering medication-assisted treatment via telehealth, with a focus on discreet, at-home Suboxone prescriptions. Direct competitor in teleprescribing-based OUD care.
• Workit Health: Workit Health is a digital SUD treatment platform offering virtual medication-assisted treatment and therapy for opioid and alcohol use disorders, with employer and health plan distribution. Closest direct competitor to Pelago in the virtual SUD clinic category.
• Boulder Care: Boulder Care is a telemedicine provider focused specifically on opioid use disorder, offering buprenorphine-based MAT, counseling, and care navigation. Direct competitor to Pelago in teleprescribing for OUD with a similar value-based contracting model.
• Quit Genius (Quit.com): Quit (formerly Quit Genius) is a digital tobacco and substance use cessation platform serving employers and health plans. Direct peer to Pelago in digital SUD/telehealth delivery for employer benefits with a similar ROI-led go-to-market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/pelagohealth
• YouTubeyoutube.com/@pelagohealth
• Facebookfacebook.com/Pelago-105459435908475
• LinkedInlinkedin.com/company/pelago-health

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds7 records

Investors22 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Pelago