Calm, the meditation and wellness app that launched back in 2012, has today announced the close of an $88 million Series B financing with a valuation of $1 billion. (We have not been able to clarify whether the valuation was post- or pre-money.)
The funding was led by TPG Growth, with participation from CAA and existing investors Insight Venture Partners and Sound Ventures.
As meditation grows in popularity across the U.S. — the CDC says it tripled from 4.1 percent in 2012 to 14.2 percent in 2017 — Calm has capitalized on the craze by offering a suite of mindfulness and wellness tools, from guided meditation sessions to a product called “Sleep Stories,” via a subscription.
But Calm is also meeting stress where it lives. For example, the company invested $3 million in XPresSpa late in 2018. XPresSpa is a chain of quick spa stores found in airports. Meanwhile, Calm partnered with American Airlines to offer Calm content within AA’s in-flight entertainment system.
The growth of Calm is hard to deny. The company says that it has topped 40 million downloads worldwide, with more than one million paying subscribers. Calm also says that it quadrupled its revenue in 2018 — the company is now profitable — and is on track to do $150 million in annual revenue.
With the new financing, Calm’s total amount raised comes to $116 million.
Moreover, Calm’s valuation has soared from $250 million at the beginning of 2018, on the heels of a $27 million Series A, to now hit $1 billion.
Here’s what cofounder and co-CEO Michael Acton Smith had to say in a prepared statement:
We started as a meditation app, but have grown far beyond that. 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.
Cofounder and co-CEO Alex Tew said that the funding will predominantly go towards international growth and increased investment in content.