Flo · B2C · period and women's health app
Hire a bank to run a competitive raise, then take more than planned
Set out for $100M; raised $200M at a $1B+ valuation
Workedfinancing
What they did
Flo worked with GP Bullhound to raise a growth round, going out for $100M. Multiple investors competed and the round was doubled to $200M, led by General Atlantic. Pitch centered on the freemium data layer and module expansion thesis.
What happened
Raised $200M (vs. $100M target) at over $1B valuation.
- Stage
- Growth (growth round)
Related topics
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More from Flo Health
All 10 Flo Health tactics- Test many prices in each country; keep the one with the most revenue per userHalf-price variants sometimes won: 3x retention and much higher revenue per user
- Cut the price sharply in BrazilBrazil revenue up hundreds of percent in a year; now a top-4 market
- Sell higher tiers and extra features to people who already payCohort revenue retention ~60% in year one, then rising every year
- Set separate country prices for iPhone and Android usersAndroid's best price is ~15-20% below iPhone in US/UK; far bigger gap in Brazil
- Lower the local price so ads get enough sales to scale profitably in BrazilUnlocked profitable paid installs in Brazil; not possible at the higher price
- Give the full app free in 50+ countries where people can't pay20M+ free subscriptions given; no direct revenue or growth, but motivates staff and users
More from this episode
- Flo: Give the core app away free, then sell add-on modules as users' needs change60M+ monthly users; thesis behind a $200M raise at a $1B+ valuation
- Email loyal subscribers before a price rise and explain what they get for itGuest says best-of-breed apps keep users through it; one of the main paths to positive NRR
- Spotify: Offer a family plan so one subscriber can add the rest of the householdCited as user expansion from a single acquired customer; no numbers
- onX: Sell an upgrade tier with nationwide maps on top of the single-state plan
- Quicken: Add estate planning tools (wills, trusts, document locker) as an upgradeGuest calls it an easy upgrade for users; no numbers
- Tinder: Sell packs of one-off boosts, like super likes or streak repairs, next to the subscriptionCited as extra revenue on top of subscriptions; no numbers
- AllTrails: Keep adding photos, reviews and social features to stay far ahead of Apple MapsGuest says Apple may take a few % of free users but not payers
- Nutracheck: Sell the subscription app to a big ad-funded publisher that needs subscriptionsGuest calls it a home run deal that answered the buyer's CAC questions
- Tractive: Show owners how far their dog walked compared with other dogs
- Fi: Advertise a pet supplement inside the app to people who already own the collarHost found the offer compelling; no numbers
- Offer a 10-20% cheaper web signup to skip the 30% App Store feeEvery client of the guest is exploring it; tools charge ~5-7% vs 30%