Calm – a developer of an app for meditation, mindfulness, sleep, and relaxing – raised $75 million in Series C financing, valuing the company at $2 billion.
Existing investor Lightspeed Venture Partners led the round with participation from TPG, Insight Venture Partners, Marc Benioff, and funds managed by Goldman Sachs Asset Management.
The Series C round brings the company’s total funding to $217 million, including a $115 million Series B round in 2019.
Calm offers exclusive audio content that helps users manage stress, improve focus, and sleep better.
Profitable since 2016, Calm said its app has over 100 million downloads and 4 million paying members. Calm for Business, the company’s enterprise arm, is one primary driver covering more than 10 million lives through employer partnerships, according to the company.
According to Calm, daily downloads (for its app) doubled, and members listened to more than a billion minutes of content in 2020, up 100% from 2019.
According to a new McKinsey report, 62% of employees consider mental health issues a top challenge. With accessible, effective mental wellness content to serve a diverse workforce, Calm for Business partners see 25% adoption, with 75% engagement amongst employee populations.
“We’ve greatly expanded our audio library in recent years to support and strengthen Mental Wellness through meditation, music, wisdom, and sleep,” said Michael Acton Smith, Calm co-founder, and co-CEO. “Calm’s unique content has helped transform many lives and has now had over 1 million five-star reviews in the App Store.”
“Calm continues to redefine the wellness category, innovating across content and distribution channels,” said Nicole Quinn, Lightspeed Venture Partner and Calm’s newest board member. “With Calm’s renewed focus on accessibility through global expansion and enterprise, Calm is on track to be one of the most meaningful brands of our lifetime.”
mHealth apps companies are witnessing a significant surge in funding amid the COVID-19 pandemic. mHealth companies raised nearly $2 billion in the first nine months (9M) of 2020, a 13% increase year-over-year (YoY), according to Mercom Q3 & 9M 2020 Digital Health Funding and M&A Report. Early this year, Headspace, the maker of a mindfulness and meditation app, raised a total of $93 million in a Series C funding round.