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Digital health startup Noom raises $540 million in Silver Lake-led funding round

By Reuters

<p><body> <p>(Reuters) – Digital health platform Noom said on Tuesday it had raised $540 million in a funding round led by buyout firm Silver Lake.</p> <p>The company did not disclose the valuation at which the funds were raised. But Bloomberg News reported on Monday that the latest funding round valued Noom at $3.7 billion. (</p> <p>The round included new investors such as Singapore’s Temasek, life sciences-focused investment firm Novo Holdings and healthcare and fintech-focused venture capital firm Oak HC/FT.</p> <p>Existing investors including Sequoia Capital, <span class="caps">RRE</span> Ventures and Samsung Ventures, the investment arm of Samsung Group, also participated in the raise.</p> <p>Noom said it planned to mainly use the funds to expand its platform while also keeping a portion of them for share buybacks. </p> <p>Adam Karol, a managing director at Silver Lake, and former TaskRabbit chief executive Stacy Brown-Philpot will join Noom’s board, the company said. </p> <p>Brown-Philpot, who is also a founding member of SB Opportunity fund, a venture fund dedicated to supporting Black, Latinx and Native American founders, will be also joining as an independent director, Noom said.</p> <p>Noom could go public within a year, in an initial public offering that could value the startup at around $10 billion, according to Bloomberg News.</p> <p>The health and fitness app started in 2006 under the name WorkSmart Labs. It is headquartered in New York, and also has offices in Seoul and Tokyo.</p> <p/> <p> (Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni)</p> </body></p>