Los Angeles-based meditation and mindfulness firm, Headspace has announced that it has raised $93 million in a Series C funding round, which includes $53 million in equity and $40 million in debt.
Blisce led the equity financing, which included participation from Waverley Capital and Times Bridge, The Chernin Group, Spectrum Equity, and Advancit Capital. A $40 million debt financing from Pacific Western Bank supplemented the $53 million in equity.
Headspace states it will be using some of the proceeds to distinguish itself from its rivals (such as Calm) with the development of a new product focusing on mental health tools for patients with chronic conditions and diseases. It also looks to expand further into international markets, tapping Apple Executive Renate Nyborg to lead its European expansion. Notably, the app already has German and French versions of the platform available.
“Headspace has shown millions of people the power of using mindfulness to mitigate stress, anxiety, and other everyday issues while continuing to advance the field through clinically-validated research,” said Richard Pierson, the chief executive, and co-founder of Headspace, in a statement. “As we think about the next ten years and beyond, we are focused on harnessing this power and applying it to other areas of our members’ lives to help them create healthy routines that last a lifetime — whether that is through our Headspace consumer app, the work we currently do with hundreds of employers, or with healthcare providers as we look to deliver better access.”
Over the years, Headspace has also introduced a B2B segment dubbed, Headspace for Work. It currently counts Starbucks, Adobe, Hyatt, and GE among its 600 enterprise customers. Headspace Health is the company’s latest offering, hoping to integrate mindfulness into health care.
The app has been downloaded more than 62 million times in 190 countries and has more than 2 million paid subscribers. While 600 employers have signed up for Headspace for Work.
Its rival Calm announced the close of an $88 million Series B round that took it into unicorn status with a $1 billion valuation last year. Backed by TPG Capital and the entertainment agency CAA, Calm has recently inked deals with celebrities like LeBron James, who also has an equity stake in the company.