Fresh out of a big funding round, the Noom weight loss app plans to expand to more health issues and start selling its services as a covered benefit. It will dive into a competitive space, competing for employers’ money alongside other well-funded competitors, such as Livongo and Omada Health.
New York-based Noom takes a similar approach for its app, which uses coaching, support groups, and digital programs to help people lose weight. Less well-known part of her activity, she also digital diabetes prevention program since 2017.
Today, the company is piloting a stress and anxiety program, which it plans to launch later this year. In a press release, Noom also mentioned an interest in expanding hypertension and sleep, although he doesn’t share as many details.
A recent $ 540 million round of funding led by Silver Lake Capital will help propel these plans. As part of the deal, the company will gain two new board members: Adam Karol, Managing Director of Silver Lake, and former TaskRabbit CEO, Stacy Brown-Philpot.
“Digital healthcare is undergoing a major transformation and consumers want to be more empowered to take control of their health,” Noom CEO and co-founder Saeju Jeong wrote in an emailed statement. “Our mission is to help people everywhere live healthier lives, and this strategic investment will accelerate our plans to remedy more conditions and create long-term transformational health outcomes.
Noom also said he plans to use the funds to expand into new geographies and to approach employers. To date, most of its activity has been done through direct subscriptions to consumers. In 2020, the company nearly doubled its revenue to $ 200 million in 2019. It also plans to use some of the cash on share buybacks.
There are rumors that the startup is also considering an IPO. A Bloomberg report last week cited anonymous sources that Noom raised money from Silver Lake ahead of a planned public listing, with a current valuation of $ 4 billion.