Headspace has raised $93 million in Series C funding, the company announced Wednesday. That breaks down to $53 million in equity from investors and $40 million in debt financing from Pacific Western Bank.
In total, the Santa Monica, California-based mindfulness and meditation company has raised $168.2 million in its decade-long lifetime, according to the fundraising tracker Cunchbase.
Headspace is a direct-to-consumer provider of virtual meditation and mental fitness products and resources. It also has a B2B offering for employers, called Headspace for Work, and is investing in the integration of mindfulness into healthcare through its Headspace Health initiative.
Its latest funding round was led by Blisce, a growth stage venture investment firm, with participation from The Times Group of India’s Waverley Capital and Times Bridge, as well as existing investors such as The Chernin Group, Spectrum Equity and Advancit Capital.
The funding will help Headspace develop new specialty solutions for people with chronic conditions and continue its rapid international growth.
“Headspace has shown millions of people the power of using mindfulness to mitigate stress, anxiety and other everyday issues while continuing to advance the field through clinically validated research,” CEO and cofounder Richard Pierson told Behavioral Health Business in an emailed statement. “We’re excited to double down on our investment in Headspace Health to create new digital therapeutic products to help patients manage stress-related chronic health conditions.”
In addition to expanding its capabilities, the company is also planning to use the money to fuel its movement into new geographies, according a press release announcing the news.
Last year, the startup launched French and German versions of its app and hired former Apple executive Renate Nyborg to lead its European expansion. Headspace also has Spanish and Portuguese versions of its offerings, as well as plans to grow its footprint in Asia with the help of strategic partners like the The Times of India.
Headspace boasts more than 62 million downloads of its app in more than 190 countries total, with two million-plus paid subscribers and over 600 corporate customers using Headspace for Work, a quickly growing program BHB recently highlighted.
Those employer partners include big name companies such as Adobe (Nasdaq: ADBE), Hyatt (NYSE: H) and Starbucks (Nasdaq: SBUX). Between 2017 and 2018 — and again in 2019 — Headspace doubled its B2B revenue, “a trend it expects to continue,” according to the press release.
“As we think about the next ten years and beyond, we are focused on harnessing this power [of mindfulness] and applying it to other areas of our members’ lives to help them create healthy routines that last a lifetime – whether that is through our Headspace consumer app, the work we currently do with hundreds of employers or with healthcare providers as we look to deliver better access,” Pierson said in the press release. “We are excited to work with leading global investors who share our vision to improve the health and happiness of the world.”
