Health management and weight loss app Noom landed a whopping $540 million in Series F funding. Silver Lake led the round with participation from Oak HC/FT, Temasek, Novo Holdings, Sequoia Capital, RRE and Samsung Ventures.

Noom's last funding round raked in $58 million in 2019 in order to help grow the business.

WHAT IT DOES

Historically, Noom has been focused on helping users lose weight and improve their fitness level. The company developed a tool that uses behavioral therapy to help users change their habits.

Users tapping into the company's signature product, Noom Weight Loss Coach, are paired with a dedicated human health coach based on their lifestyle and preferences. The startup is also employing AI to help personalize the experience for its users. 

WHAT IT'S FOR

The company is looking to use the new funds to expand its focus area beyond weight loss. It said the new funds will help it address more conditions, including stress, anxiety, diabetes, hypertension and sleep.

Noom is also looking to put the cash toward expanding its geographical footprint.

“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, cofounder 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 LARGER TREND

Founded in 2008, Noom has been in the digital space for some time. It's also a very well-funded company. To date, it has collected around $657.3 million in funding.

There have been hints that the company is looking to expand into additional care areas for some time. In 2017, the company's tool was used in a small study that demonstrated its coaching tool was linked to a reduction in hypertension. Last year, the startup announced that it was teaming up with diabetes-focused company Novo Nordisk on a new tool for weight management education.

While many of its efforts are looking beyond weight, its research has also continued to build on healthy habits. In early 2020, the American Journal of Psychiatry published a study that suggested a binge eating treatment strategy combining cognitive behavioral therapy (CBT), telemedicine consultations and Noom’s self-monitoring app could be effective in reducing symptoms compared to standard care.