Calm co-founders Alex Tew (left) and Michael Acton Smith (right) in the company’s San Francisco HQ image : Calm

Calm, the San Francisco based mental health startup whose popular app boasts over 40 million downloads according to the company’s statement, has hit unicorn status with an $88 million investment led by TPG Growth, with participation from Aston Kutcher’s Sound Ventures, Insight Venture Partners and Creative Artists Agency (CAA). This round sets the total amount raised by Calm since its launch in 2012 at $116 million, and values the company at $1 billion.

San Francisco based Calm says it’s profitable, with a current $150 million annual revenue run rate and more than 1 million paying subscribers – all with a team of just 50. It says it quadrupled revenue in 2018 and will gear this funding towards international growth and increased investment in content.

The Calm app in display image : Calm

“We started as a meditation app, but have grown far beyond that,” co-founder and co-CEO Michael Acton Smith said in a press release. “Our vision is to build one of the most valuable and meaningful brands of the 21st century. Health and wellness is a $4 trillion industry and we believe there is a big opportunity to build the leading company in this fast growing and important space.”

Calm became the top grossing health and fitness app worldwide – according to App Annie statistics – in 2018. In addition to its app which helps users cope with issues like anxiety, insomnia and stress, Calm also makes offline revenue via products like Sleep Mist, a natural sleep aid that makes use of scent and sound to get users realized. The company launched this in 2017.

The Calm Sleep Mist image : Calm

Calm also has partnerships with the likes of Uber, Sonos, American Airlines and spa chain XPresSpa, ,with the aim of spreading its mental fitness service to a larger audience. “Calm is changing the way people think about their health and their mindset, responding to a global demand for wellness solutions,” TPG partner David Trujillo said in the press release. “Calm stands out for its potential to succeed in a rapidly expanding health and wellness industry, and we’re excited about their prospects for growth.”

Share this...

Facebook

Pinterest

Twitter

Linkedin

Whatsapp

Email

Print