Healthtech startup Noom is now looking to expand to more health condition areas and sell its services for employee benefit programs as it secures a new round of funding. Noom, secured approximately $ 540 million Series F funding. The investment round has been led by Silver Lake and the other new investors participating in the round include Oak HC and FT, Temasek, and Novo Holdings. Existing investors Sequoia Capital, RRE, and Samsung Ventures also funded the round.
Funds to help the company help more people
Founded by Korean-American Saeju Jeong in 2008, Noom has established itself as a leader in the weight-loss diet and nutrition segment app world. Building on the solid foundation of its weight management business, Noom will use the newly-raised capital to expand its highly-adaptable behavior change platform to address a broad range of conditions, including stress and anxiety, diabetes, hypertension, and sleep.
The funds will enable Noom to reach to more people in more places—from new geographies to employee benefits programs. A portion of the new capital is also being used for share repurchases as part of the company’s broader capital allocation framework. As part of the deal, the company will gain two new board members: Silver Lake Managing Director Adam Karol and former TaskRabbit CEO Stacy Brown-Philpot.
“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.
An App that helps make behavioural changes
Noom applies a highly differentiated, psychology-based approach to health and wellness by harnessing behavior change and technology to create long-term positive health outcomes. With more than a decade of research, innovation, and product development, Noom has attracted millions of global users to its powerful consumer-first platform, primarily through its flagship weight management program.
The company has been awarded multiple grants from the National Institutes of Health and was the first mobile application to be recognized by the Centers for Disease Control as a certified diabetes prevention program. Headquartered in New York City, Noom has been named one of Inc’s Best Places to Work and Fortune’s Best Workplaces in Technology.
“I am energized by the tremendous momentum Noom has seen over the past year. Adding a well-rounded group of seasoned investors, led by Silver Lake, and new board members, provides the right combination of insights, expertise, and relationships, in both technology and healthcare, as we continue to help people change their behavior for good and create transformational health outcomes,” said Saeju Jeong.
Meanwhile, it is rumored that the startup is planning an IPO. Anonymous sources have said that Noom had raised funding from Silver Lake ahead of a planned public listing, with a current valuation of $4 billion. “Noom is a pioneer and clear leader in building weight management solutions that combine sophisticated technology, human coaching, and psychology to support long-term, positive health outcomes,” said Greg Mondre, Silver Lake’s Co-CEO on the recent funding rounds.