Employee wellbeing platform Sonder has raised $40 million following a year of stellar growth that has driven memberships above one million for the first time as businesses grapple with emerging challenges for staff in customer-facing roles.

The latest capital raising, which will help the Sydney-based company scale its operations in Australia, New Zealand and the UK, was led by Blackbird Ventures and SEEK (ASX: SEK), with new investment from Hostplus Super and support from existing investors including MA Growth Ventures.

Sonder, which was founded in 2016 by Peter Burnheim, Chris Marr and Craig Cowdrey, has reported 40 per cent year-on-year growth amid rising demand from HR teams grappling with mounting complexity in the workplace through high employee turnover and absenteeism, increasing customer aggression, elevated mental injury claims and psychosocial occupational health and safety legislation.

Cowdrey, the Sonder CEO, says business growth has also been aided by a growing recognition by businesses that employee health, safety and wellbeing are essential to both workforce engagement and commercial success.

“Businesses are recognising that investing in employee health, safety and wellbeing is not just the right thing to do – it’s a critical driver of retention, productivity and business success,” he says.

“Our latest data shows that 56 per cent of members wouldn’t have sought help without Sonder, and 77 per cent report feeling better after using our platform. That’s the real-world impact we’re delivering every day.”

Cowdrey says the latest capital raise will be used to enhance the Sonder platform and scale its operations globally, while also building new AI-driven features and products for members.

“We’re building a future where every employee has 24/7 access to medical, safety and mental health support – ensuring they can bring their best selves to work and life,” he says.

The Sonder 2024 Burnout Report found 49 per cent of Australian and New Zealand employees often or always felt exhausted or burnt out in the previous 12 months and 52 per cent rated their mental health as average to very poor.

Recent data from Sonder also revealed that 75 per cent of Australian and New Zealand employees in customer-facing roles experience customer aggression, with 25 per cent reporting incidents at least once a week. The report also reveals that 29 per cent of affected workers received no support after these incidents.

Blackbird partner and co-founder Niki Scevak says Sonder has proven its worth to the Australian market.

“The Sonder platform delivers tangible health, wellbeing, safety and financial outcomes to customers, addressing core challenges that are prevalent across almost all businesses,” says Scevak.

“With a healthy crop of blue-chip businesses already signed and an outstanding team, we’re bullish Sonder will continue its rapid growth and be a household name.”

Among Sonder major customers are David Jones, Yo-Chi, Lifeblood, Mirvac (ASX: MGR), Hoyts and Insurance Australia Group (ASX: IAG).

“Sonder has been instrumental in creating positive outcomes for our workforce,” says Jodi Paton, chief people officer at Hoyts.

“The ability to provide 24/7 safety, medical and mental health support has not only helped our employees feel safer and more supported but has also delivered effective business benefits.

“Knowing that our people have immediate access to expert support – whether they’re dealing with an incident in one of our cinemas, a personal medical concern or a safety threat – has given us confidence that we’re not just meeting our duty of care, but are investing in our team’s wellbeing.”

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