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Weight-Loss Platform Noom Raises US$540 Million

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Noom is a weight-loss platform that strives to help users achieve sustainable health goals. Users can track their caloric intake, input exercises, and interact with a community of other people working toward a similar goal. The COVID-19 pandemic, and the accompanying public health measures and business closures, have made it difficult for people to access traditional fitness resources. As a result, the average US adult gained approximately 15 pounds in 2020. In the same time, Noom nearly doubled its 2019 revenue, bringing in US$400 million. This surge supported their Series F financing round led by Silver Lake which raised US$540 million.

Noom’s success during the COVID-19 pandemic is impressive, but not new for the tech startup. In each of the preceding three years, Noom quadrupled their previous annual revenue, growing from US$12 million in 2017 to US$61 million in 2018 and US$237 million in 2019. While the pandemic may have propelled Noom’s latest growth, their pre-pandemic success will likely give comfort to investors showing that their success is sustainable.

Noom plans to use the half-billion dollar funding round to hire new talent as their business model expands into new areas like stress-management, sleep, diabetes, and hypertension. Noom is also beginning to target employers and health insurers for use in workplaces as opposed to their current individualized model. As Noom continues on a steady growth trajectory, they may be looking to go public soon, targeting a valuation close to US$10 billion.

Author: Tommy Friedlich, 2021 Summer Student-at-law

Photo Credit: https://unsplash.com/@pineapple

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