SAN FRANCISCO – Calm, which develops an app for sleep, meditation and relaxation, has made a strategic $3 million equity investment in XpresSpa Group, Inc., the largest and most established leader in fast-spa services. Calm will offer its flagship products — digital app subscriptions, Sleep Mist and the Calm Book — at 52 XpresSpa locations in major airports across the country such as Atlanta, Chicago, Los Angeles, Miami and New York. There are 4 locations in the San Francisco Airport.
XpresSpa is publicly traded on the Nasdaq under the symbol XSPA.
“The need for mental fitness in our stressed, fast-paced world is clear, and we’ve already seen a tremendous increase in our digital user base, growing 110% percent in downloads this year,” said Michael Acton Smith, co-founder and co-CEO of Calm. “By partnering with XpresSpa, we’re expanding beyond our core app offering to reach more offline consumers, and dialing in on a common consumer pain point: traveler stress.”
“Calm’s strategic investment is demonstrative of its confidence in XpresSpa and will enable us to further our mission of giving busy travelers wellness and the opportunity to de-stress while on-the-go with cutting-edge products and services,” said Ed Jankowski, CEO of XpresSpa. “We’re excited to be partnering with Calm, a brand at the forefront of accessible mindfulness in today’s always-on environment.”
As Calm expands its brick-and-mortar presence, Calm will now have the opportunity to cultivate an in-person wellness experience for consumers, fundamentally changing how users interact with the brand offline. Over the past 14 years, XpresSpa has become the leader in providing premier wellness solutions in 30 minutes or less, and now Calm subscribers will receive a host of in-store benefits and treatments, adding to the app’s expansive digital offering. XpresSpa gains access to Calm’s subscriber base of wellness-oriented consumer which compliments its strategy to enhance customer retention through a broader assortment of offerings and drive engagement via its XpresSpa loyalty program.
“We are excited about Calm’s strategic investment of up to $3 million in preferred equity, convertible at $0.62 per share, which is a premium to the market price and demonstrates the value of our industry leading platform,” said Bruce Bernstein, XpresSpa Chairman. “This investment will support our ongoing strategy of raising XpresSpa’s brand profile across new and existing markets and enhance our customers’ experience.”
“We’re intent on bringing simple, affordable and mindful solutions to everyone,” added Calm co-founder and co-CEO Alex Tew. “Traveling in any situation can be stressful and during the holidays is no exception – more than 100 million Americans will be on-the-go this time of year. This partnership was built to create an added layer to our existing mobile wellness option, giving busy travelers a physical hub to unwind this holiday season and beyond.”