Calm, the popular meditation app, has recorded remarkable growth, going from 40 million users as of February 2019 to over 100 million downloads today. Its number of paying users also increased from one million to four million.
Now, the company has announced that it received $75 million in Series C funding, raising the company’s valuation to $2 billion. The funding round was expected, following reports that the company was seeking $150 million for a $2.2 billion valuation.
Leading the investment round is Lightspeed Venture Partners, joined by TPG, Insight, and Marc Benioff. Funds were handled by Goldman Sachs Asset Management.
The additional funding for Calm hardly comes as a surprise. The company has experienced rapid revenue growth in the recent past - as well as profit growth. Start-ups in the mental health sector are, historically at least, the stars of the VC show.
The coronavirus pandemic may be the reason many investors are interested in Calm. Scientists forewarned the potential psychological impact of a pandemic on humans. Record-high unemployment caused by the pandemic may be contributing to high levels of distress in large numbers of people, based on a study by Pew Research.
Calm is an assisted meditation app that helps people sleep and relax. Different features are available on the app, including meditation and breathing coaching. There are sleep stories read by silk-voiced celebrities like Idris Elba, Nick Offerman, and Matthew McConaughey. There are also different scenes and settings that help with relaxation.
In response to the effects of the coronavirus, Calm launched a page providing free resources and focused on its collaboration with Kaiser Permanente, a non-profit health platform. Kaiser began the trend of providing its members with the Calm app’s premium subscription at no cost.
At $70 yearly or for a $15 monthly subscription, users can get access to Calm’s service. The company also has its corporate arm, called “Calm for Business,” which will help to ensure Calm’s revenue stability and support its consumer reach.
Calm and its main competitor, Headspace, have raised a total of $434 million, evidence of their model’s appeal to venture capitalists. With the new funding, Calm can expand its business worldwide and gain a better foothold in the business space. As the world slowly recovers from the effects of the coronavirus, apps like Calm can be the perfect solution to ease the tension and distress that has persisted for several months.