Contemporary off of a giant funding spherical, weight reduction app Noom plans to develop into extra well being circumstances and begin promoting its companies as a coated profit. It’ll be diving right into a aggressive area, vying for employers’ {dollars} alongside different well-funded opponents, resembling Livongo and Omada Well being.
New York-based Noom takes the same method for its app, which makes use of teaching, help teams and digital applications to assist folks shed some pounds. A much less well-known a part of its enterprise, it’s additionally had a digital diabetes prevention program since 2017.
Now, the corporate is piloting a program for stress and nervousness, which it expects to launch later this yr. In a information launch, Noom additionally talked about an curiosity in increasing into hypertension and sleep, although it didn’t share as many particulars.
A current $540 million funding spherical led by Silver Lake Capital will assist propel these plans. As a part of the deal, the corporate will acquire two new board members: Silver Lake Managing Director Adam Karol and former TaskRabbit CEO Stacy Brown-Philpot.
“Digital healthcare is present process a significant transformation, and shoppers need to be extra empowered to take management of their well being,” Noom CEO and Co-Founder Saeju Jeong wrote in an emailed assertion. “Our mission is to assist folks in every single place stay more healthy lives, and this strategic funding will speed up our plans to handle extra circumstances and create transformational well being outcomes for the long-term.”
Noom additionally stated it plans to make use of the funds to develop into new geographies and to method employers. Thus far, the majority of its enterprise has been by means of direct-to-consumer subscriptions. In 2020, the corporate almost doubled its income from $200 million in 2019. It additionally plans to make use of a number of the money for share repurchases.
The startup can also be rumored to be planning an IPO. A Bloomberg report final week cited nameless sources that Noom had raised funding from Silver Lake forward of a deliberate public itemizing, with a present valuation of $4 billion.