- Meditation app company Calm announced it has raised $75 million in funding at a valuation of $2 billion. These are the details.
Meditation app company Calm announced it has raised $75 million in funding at a valuation of $2 billion. This round of funding was led by previous investor Lightspeed Venture Partners. Insight, TPG, and Salesforce CEO Marc Benioff also joined the funding round.
“With companies now taking mental well-being at work seriously, there’s so much opportunity, and we raised capital to be able to put the foot down on the gas even more,” said Calm co-founder and co-Chief Executive Officer Alex Tew in an interview with Bloomberg.
Tew pointed out that there has been interest from many organizations that are seeking to alleviate anxiety due to the COVID-19 pandemic. For example, American Express cardholders and 12 million members that are covered by Kaiser Permanente can access Calm at no additional cost.
Calm has been profitable since 2016. And with the funding, Calm is planning to grow even more through potential M&A deals according to Calm co-founder and co-CEO Michael Acton Smith.
In the company’s last funding round, the company was valued at $1 billion. And including this round of funding, Calm has raised $217 million so far.
Calm sells a subscription to its app for $15 per month (or a discounted $70 per year). And the company reported it has hit over 100 million downloads. The company also went from 1 million paying as of February 2019 users to 4 million now, according to TechCrunch.