Noom Inc. is a mobile phone app that is designed to help people lose weight and develop better habits through behavioral therapy methods and progress logging. First founded in 2008, the company has long been revered for its alternative approach to weight loss, with a high success rate for its monthly subscribers.
A 2016 study of 36,000 Noom users found that 78% lost weight while using the app, with nearly a quarter losing more than 10% of their initial body weight. Another study published in 2020 by the American Journal of Psychiatry suggested that Noom is an effective part of a multi-treatment system of managing binge eating.
Now the company plans to expand into the realms of chronic illness and health management after a staggering $540 million raised in a recent Series F funding round. Led by Silver Lake, the round also saw participation from Oak HC/FT, Temasek, Novo Holdings, RRE, Samsung Ventures, and Sequoia Capital.
“Most people want to eat healthier, exercise more, be less stressed, and get better sleep, but it’s not easy to change these behaviors. This strategic round of funding reflects our investors’ confidence in the immense opportunity we have in building a business around helping as many people as possible live healthier lives through behavior change,” said Saeju Jeong, Co-founder and CEO of Noom.
The funding will be used to expand the company on a global scale and to further develop Noom’s abilities to treat or self-monitor afflictions like diabetes, stress, anxiety, hypertension, and lack of sleep. According to Jeong, these are things that go hand-in-hand with being overweight in many cases, so diving into these waters should come naturally to Noom. The company is also looking into expanding its AI capacities to create a comprehensive platform capable of catering to specific customer needs, rather than taking a one-size-fits-all approach.
The weight-loss industry is poised for future growth as individuals look for accessible and convenient ways to manage their health more holistically. With apps like that developed by Noom, customers can have access to tools for making long-term changes to diet and behavior while avoiding the classic pitfalls associated with traditional dieting and weight management systems.