Weight-Loss App Noom Gets $540 Million in Silver Lake-Led Round

Noom Inc., whose app is designed to assist folks shed pounds by altering their conduct, raised $540 million in a brand new funding spherical because it seeks to broaden into different realms of non-public well being.

Private fairness agency Silver Lake led the spherical, which additionally included buyers similar to health-care funds Oak HC/FT and Novo Holdings. Noom plans to make use of the cash to rent contemporary expertise, Chief Executive Officer Saeju Jeong mentioned in an interview.

Noom is valued at $3.7 billion after the spherical, based on individuals who requested to not be recognized as a result of the data was non-public. A consultant for the corporate declined to touch upon the valuation.

Noom, based greater than a decade in the past underneath a unique identify, noticed curiosity swell amid the coronavirus pandemic. Sales reached $400 million final yr, up from $200 million in 2019, mentioned Chief Financial Officer Michael Noonan.

Noom is increasing past weight reduction to areas similar to stress administration, assist with sleep, diabetes and hypertension. While it presently focuses on particular person shoppers, it’s additionally reaching out past the app retailer, tapping employers and presumably even well being insurers.

Pushing into the enterprise market will pit Noom in opposition to a rising variety of firms vying for that enterprise. The digital well being area is booming, with startups pitching employers on know-how to make their staff more healthy and scale back their prices.

“That’s the place we are available, and we get excited as a result of that’s very a lot our bread and butter,” mentioned Andrew Adams, Oak HC/FT’s co-founder and managing associate.

Noom may go public inside a yr. The firm has met with potential advisers to debate an preliminary public providing, eyeing a valuation of round $10 billion, Bloomberg has reported. Noonan wouldn’t touch upon the corporate’s itemizing plans.

Sequoia, Samsung Ventures

The newest funding spherical was a mixture of major and secondary purchases, Noom mentioned. Silver Lake, Oak HC/FT, Novo Holdings and Temasek had been the brand new buyers taking part within the Series F spherical. Existing buyers Sequoia Capital, RRE and Samsung Ventures additionally contributed.

Adam Karol, managing director at Silver Lake, and Stacy Brown-Philpot, former Taskrabbit Inc. CEO and a founding member of the SoftBank Opportunity Fund, will be part of Noom’s six-member board of administrators.

Getting folks to shed pounds and preserve it off is difficult — and probably profitable. Almost three-quarters of adults within the U.S. are chubby and about 43% qualify as overweight, based on the Centers for Disease Control and Prevention. Dieting might help folks shed kilos, although folks have a tendency to achieve them again. Noom markets its program as addressing underlying psychological elements associated to weight acquire.

“We are constructing the world’s greatest behavior-changing platform,” Jeong mentioned.

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