US-based mindfulness and meditation app developer Calm secured $88m in series B funding yesterday from investors including talent and sports agency Creative Artists Agency (CAA).
The round was led by TPG Growth, the growth equity arm of private equity group TPG that formed investment firm Evolution Media with CAA. It also featured venture capital firms Insight Venture Partners and Sound Ventures, and valued Calm at $1bn, bringing its total funding to $116m, the company said.
Founded in 2012, Calm has created a freemium app that provides mindfulness-based guided meditation programs aimed at helping users cope with mental health issues such as anxiety, insomnia or depression.
The app also offers original bedtime stories for adults called Sleep Stories which are narrated by celebrities such as actors Matthew McConaughey and Stephen Fry.
Calm made a $3m equity investment in airport-based spa service Xpress Spa in November 2018 and has since given its premium users free access to Xpress locations at 52 airports across the US. It claims it is profitable and has more than 1 million paying users.
The company had previously received $27m in a June 2018 series A round that valued it at $250m. Insight Venture Partners led the round, while Sound Ventures and performer Harry Styles also contributed capital.
Launch Fund, AngelList and angel investors Matt Mullenweg and Matt Cheng had supplied approximately $580,000 in seed funding for Calm in 2014, following a $415,000 angel round the preceding year.
Alex Tew, Calm’s co-founder and co-CEO, said: “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.”
