Mental health app Calm becomes unicorn after $88m raise

Ben Heathcote

In App Deals. February 6, 2019

Calm, the meditation and relaxation app, has hit a valuation of $1 billion after securing an investment of $88 million to “invest in our mission of improving the health and happiness of the world”.

The Series B round was led by TPG Growth with participation from Creative Artists Agency (CAA) and existing backers Insight Venture Partners and Sound Ventures. The round brings the San Francisco-headquartered company’s total funding to date to $116 million.

Calm has become one of the world’s most popular apps for sleep, meditation and relaxation, helping users cope with mental health issues including anxiety, stress, and insomnia. Having secured fresh funding, the company said its top priorities will be to expand into more languages internationally, grow its team and create more content, including meditations, music and ‘Calm Masterclasses’.

Alex Tew, 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. We are excited to be working with an incredible partner in TPG for this new phase of Calm’s journey.”

Michael Acton Smith, co-CEO, added:

“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.”

Calm has grown to more than 40 million downloads worldwide, claiming to attract one new user every second. It has also quadrupled revenue in 2018, is currently on a $150 million annual revenue run rate, and has well over one million paying subscribers.