Calm, the startup that helps people contend with anxiety, stress and insomnia, has raised $88 million in venture funding, giving the company a valuation of $1 billion.
In a press release, Calm said the funding was led by TPG Growth. Other investors who participated in the round include Creative Artists Agency and existing investors Insight Venture Partners and Sound Ventures. With the $88 million raised, the startup’s total funding stands at $116 million.
Calm helps people cope with mental health issues. Citing the CDC, Calm said meditation practice more than tripled in terms of usage from 2012 to 2017. What’s more, the company said one in four Americans have trouble sleeping. The company’s Calm Sleep Stories, which are basically bedtime stories for grownups, surpassed more than 100 million listens. The company has original stories read by celebrities including Matthew McConaughey, Stephen Fry and Leona Lewis.
“This financing will accelerate our mission to make the world healthier and happier, with international growth and an increased investment in content being top priorities,” Alex Tew, Calm co-founder and co-CEO, said in the press release announcing the funding. “We are excited to be working with an incredible partner in TPG for this new phase of Calm’s journey.”
The company said it is profitable and has more than 40 million downloads worldwide, with one new user joining each second. The startup has an annual revenue run rate of $150 million and has more than 1 million paying subscribers. In addition to running its popular app, Calm has inked partnerships with American Airlines, Sonos, Uber, XpresSpa and others to bring mental fitness to more consumers.
“Calm is changing the way people think about their health and their mindset, responding to global demand for wellness solutions,” said David Trujillo, partner at TPG, in the same 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.”
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