Meditation start-up Calm was so successful during a chaotic and stressful 2017 that Apple recognized it as the app of the year.
"Well done, Calm," Apple said in December.
Now the San Francisco-based company, which to date has only raised $1.5 million in seed financing, is being rewarded by investors. Insight Venture Partners is leading a funding round that values Calm at about $250 million, according to sources familiar with the matter. The total funding will exceed $25 million, said the sources, who asked not to be named because the deal hasn't closed and won't be announced for a few weeks.
Founded in 2012 by Michael Acton Smith, who previously created video game company Mind Candy, and serial entrepreneur Alex Tew, Calm more than tripled its sales last year and was generating $40 million in annual revenue by the end of 2017, Acton Smith told CNBC in a December interview. That number has since jumped to $60 million, sources said.
Representatives from Calm and New York-based Insight declined to comment for this story.
The Calm app is free but the company charges $60 a year for subscriptions to the full library of meditation, music and sleep content. The paid offering includes audio programs like "7 days of sleep" and "21 days of calm" that guide users through daily 10- to 15-minute sessions for relieving stress and anxiety.