As wellness becomes mainstream, mindfulness and meditation apps are booming, and Calm is leading the pack, hitting unicorn status completing a $88M Series B funding round and pushing its valuation past the $1 billion mark. TPG Growth led the round with participation from Creative Artists Agency (CAA) and existing investors Insight Venture Partners and actor Ashton Kutcher’s Sound Ventures.
Calm co-founders and co-CEOs Alex Tew and Michael Acton Smith told TechCrunch News that the app’s revenue grew fourfold in 2018 to $80 million from $20 million in 2017, and it is also cash-flow positive and has been for several years with a current annual revenue run rate of $150 million. The company also says it has topped 40 million downloads worldwide, with more than one million paying subscribers.
“Calm is changing the way people think about their health and their mindset, responding to a global demand for wellness solutions,” said TPG Partner David Trujillo in a written statement. “Calm stands out for its potential to succeed in a rapidly expanding health and wellness industry, and we’re excited about their prospects for growth.”
Calm’s nearest competitor Headspace has raised a total of $75 million and, according to CNBC, the company confirmed in June 2017 that it was valued at $320 million, generating more than $100 million in revenue per year.