Digital Health Platform Noom Raises $540 Million

By Amit Chowdhry ● May 28, 2021
  • Leading digital health platform Noom raised $540 million in Series F funding. These are the details.

Noom — a leading digital health platform focused on behavior change — announced recently that it raised about $540 million Series F funding led by Silver Lake. Other new investors participating in the round include Oak HC/FT, Temasek, and Novo Holdings. And existing investors Sequoia Capital, RRE, and Samsung Ventures also participated.

Noom is known for applying a highly-differentiated and psychology-based approach to health and wellness by harnessing behavior change and technology to create long-term positive health outcomes. And with over a decade of research, innovation, and product development, Noom has attracted millions of global users to its powerful consumer-first platform, primarily through its flagship weight management program. These users found success utilizing the company’s unique combination of technology, human coaches, and behavioral science to take control of their health.

Building on the strong foundation of its weight management business, Noom plans to use the newly-raised capital to expand its highly-adaptable behavior change platform to address a broad range of conditions with meaningful opportunity to further generate positive change across the lives and health of its customers, including stress and anxiety, diabetes, hypertension, and sleep. And the funds will also enable Noom to reach more people in more places. A portion of the funding is also being used for share repurchases as part of the company’s broader capital allocation framework.

The company also announced two new board members: Adam Karol (Silver Lake Managing Director) and Stacy Brown-Philpot (former TaskRabbit CEO and SB Opportunity Fund Founding Member). Brown-Philpot joins Noom as an independent director, bringing deep industry expertise in scaling mission-driven, consumer brands.

KEY QUOTES:

“Most people want to eat healthier, exercise more, be less stressed, and get better sleep, but it’s not easy to change these behaviors. This strategic round of funding reflects our investors’ confidence in the immense opportunity we have in building a business around helping as many people as possible live healthier lives through behavior change. I am energized by the tremendous momentum Noom has seen over the past year. Adding a well-rounded group of seasoned investors, led by Silver Lake, and new board members, provides the right combination of insights, expertise, and relationships, in both technology and healthcare, as we continue to help people change their behavior for good and create transformational health outcomes.”

— Saeju Jeong, Co-founder and CEO of Noom

“Noom is a pioneer and clear leader in building weight management solutions that combine sophisticated technology, human coaching and psychology to support long-term, positive health outcomes. We believe the company has only scratched the surface of how consumer-first technology can transform health and wellness, and are excited to partner with Saeju and the Noom team as they leverage their powerful platform to accelerate expansion into new chronic condition and behavioral health categories.”

— Greg Mondre, Silver Lake’s Co-CEO and Managing Partner, and Karol

“Noom is a true disruptor in the health and wellness industry, and I am inspired by the company’s mission to help people everywhere live healthier lives. I look forward to working with Noom and contributing to the company’s continued growth and success.”

— Stacy Brown-Philpot