Meditation app Calm has just closed a $88 million Series B funding round, valuing the company at $1 billion.
The financing round was led by TPG Growth with additional investments from CAA and Insight Venture Partners and Sound Ventures.
Calm launched back in 2012 and has since grown rapidly as meditation has become a growing trend across the US and other countries. Indeed, CDC data shows that the popularity of meditation reached 14.2% in 2017 (up from 4.1% in 2012).
According to Calm, the app has been downloaded 40 million times globally. It has over one million paid subscribers and an ARR of $100 million.
1+m paid subs
$100+m ARR, 10x in 24 months
#1 top grossing H&F worldwide
50 employees (x2 in 2019)
400+k 5 star iOS ratings
— Thomasbcn (@Thomasbcn) January 17, 2019
The company said it was on track to reach $150 million in revenue in 2018 – all with just 50 employees.
The latest funding round raises Calm’s total to $116 million.
“We started as a meditation app, but have grown far beyond that,” said Co-CEO Michael Acton Smith. “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 plans to use the funds to expand its international reach and boost investments.