With millions of Americans now working from home, consumers are looking for ways to achieve their health and wellness goals during this pandemic time. Noom is a popular diet app launched in 2016. The Noom app has been downloaded more than 50 million times.
Unlike other diet apps, Noom applies a 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.
Today, Noom announced it has raised approximately $540 million Series F funding to further accelerate the expansion of its popular digital health platform. The round, which also makes Noom and a member of the highly coveted unicorn club, was led by Silver Lake, with participation from new investors including Oak HC/FT, Temasek, and Novo Holdings. Existing investors Sequoia Capital, RRE, and Samsung Ventures also participated.
Founded in 2008 by CEO Saeju Jeong and Artem Petakov, the New York-based Noom provides mobile health coaching, focused on combating chronic and pre-chronic conditions such as obesity, diabetes, and hypertension. In 2021, the company’s revenue ballooned to $237 million — quadrupling from $12 million in 2017.
Noom will use the new capital infusion to expand its platform to address a broad range of conditions with meaningful opportunities to further generate positive change across the lives and health of its customers, including stress and anxiety, diabetes, hypertension, and sleep. The funds will also enable Noom to reach 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.
“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. “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.”
The company also announced two new board members, Adam Karol, Silver Lake Managing Director, and Stacy Brown-Philpot, former TaskRabbit CEO and SB Opportunity Fund Founding Member. Brown-Philpot joins Noom as an independent director, bringing deep industry expertise in scaling mission-driven, consumer brands.
“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 and Managing Partner, and Karol. “We believe the company has only scratched the surface of how consumer-first technology can transform health and wellness, and are excited to partner with Saeju and the Noom team as they leverage their powerful platform to accelerate expansion into a new chronic condition and behavioral health categories.”
Brown-Philpot added, “Noom is a true disruptor in the health and wellness industry, and I am inspired by the company’s mission to help people everywhere live healthier lives. I look forward to working with Noom and contributing to the company’s continued growth and success.”
