REUTERS: According to sources familiar with the situation, Noom Inc, the operator of the popular U.S. weight reduction app, has hired Goldman Sachs Group Inc to head its preparations for an initial public offering (IPO). Noom’s plans for a stock market debut come as the company’s fitness platform has grown in popularity as a result of the COVID-19 pandemic, with people resorting to digital health apps to stay fit and develop good habits.
According to the sources, the New York-based startup wants to more than quadruple its valuation from its May private funding round, when it was valued at US$3.7 billion by investors led by buyout firm Silver Lake. They stated that the IPO might happen as early as next year. Because the IPO preparations are confidential, the sources requested anonymity. Noom and Goldman Sachs spokespeople declined to comment. Noom utilizes behavioral psychology and artificial intelligence in its paid mobile app programs to help individuals lose weight and manage diseases like diabetes and hypertension, taking on incumbents like Weight Watchers. Sequoia Capital and Samsung Ventures, the investment arm of Samsung Group, are among Noom’s investors.
Other high-profile technological startups are eyeing the hot IPO market, which saw 13 businesses list their stock on US stock markets just last week.
According to Dealogic, IPOs in the United States, including SPAC IPOs, have raised a total of US$196.5 billion this year, handily surpassing last year’s total of US$168 billion.
(Anirban Sen in Bengaluru and Krystal Hu in New York contributed reporting; Richard Pullin edited the piece.)/n
