Hallow: Startup Case Study – A Spiritual Twist on Meditation

Hallow

Hallow is a Chicago-based startup that provides guided prayer and meditation tools for Catholics. Its main mission is to help people deepen their faith and enhance their spiritual well-being through accessible audio content and habit-building features.

Founding Year: 2018

Headquarters: Chicago, Illinois, USA

Industry: Information

Status: Currently Active

Business Model

Model: B2C, One-sided, Product

• Clients: Catholics seeking to deepen their faith and enhance their spiritual well-being through prayer and meditation.

It’s Like: Calm but for Catholics

Hallow provides guided meditations and relaxing content similar to Calm or Headspace, but focuses specifically on the Catholic audience, offering prayers, Bible stories, and content designed to deepen their connection with their faith.

With some differences, though:

• Target Audience: Calm targets a broad audience seeking stress reduction and mindfulness, while Hallow focuses exclusively on Catholics seeking to enhance their spiritual practice.
• Content: Hallow’s content centers around Catholic prayers, biblical stories, and teachings from Catholic figures, while Calm offers more secular mindfulness exercises and sleep stories.
• Community: Hallow emphasizes community features like prayer groups (“Prayer Families”), which are not a prominent feature in apps like Calm.

Key Problems Addressed

• Lack of Engaging Religious Resources: Many Catholics may find traditional prayer methods or resources unengaging or inaccessible
• Difficulty Maintaining Consistent Spiritual Practice: Modern distractions can make it challenging for individuals to maintain a consistent prayer or meditation routine.
• Limited Access to Catholic Content: Finding high-quality, readily available Catholic content, such as guided meditations or audio recordings, can be difficult.

Key Solutions Offered

• Engaging Spiritual Content: Hallow offers a variety of audio-guided prayers, meditations, Bible stories, and reflections designed to make prayer more accessible and engaging.
• Habit Building Features: The app includes features like daily and weekly goals, progress tracking, and push reminders to help users cultivate a consistent prayer routine.
• Diverse Content Library: Hallow provides a wide range of Catholic content, including different translations of scripture, various prayer styles, and reflections on Catholic teachings.
• Community Support: The app fosters a sense of community through features like “Prayer Families,” allowing users to connect and pray with others.

Founding Story

• When and How Founded: Hallow was founded in 2018 by Alex Jones (CEO), Erich Kerekes (CTO), and Alessandro DiSanto (COO).
• Why They Started: They recognized the large potential market of 1.3 billion Catholics globally and aimed to provide them with a digital tool for spiritual wellness.
• Problem-Solving Approach: They modeled Hallow after successful mental health apps, offering guided meditations, prayer resources, sleep content, and community features, all within a Catholic framework.
• First Results: Hallow reported over 1 million downloads by the fall of 2021.
• Continued Growth: The app continued to gain traction, reaching 3.75 million downloads by the fall of 2022 and surpassing 10 million downloads by May 2023.
• Innovation/Technology: Hallow leverages mobile technology to deliver its content and features. The app offers personalized experiences, tracks user progress, and sends reminders to foster engagement.

Key Growth Milestones

• 2018: Hallow is founded.
• Fall 2021: Surpasses 1 million downloads.
• Fall 2022: Reaches 3.75 million downloads.
• May 2023: Exceeds 10 million downloads and secures $50 million in Series C funding.
• February 2024: Hallows makes history as the first religious app to top the App Store.

Market & Competition

Target Market

• Primary Target Market:
  • Catholics: With approximately 1.3 billion individuals globally, this segment represents a substantial potential user base.
  • Growth: The Catholic population is steadily growing worldwide. While specific growth rates for app usage within this demographic aren’t provided, the success of Hallow thus far suggests a strong market opportunity.
• Potential New Markets:
  • Specialized Mental Health Applications: Exploring mental health apps tailored to specific demographics, such as students, children, shift workers, and young people. The mental healthcare services market is projected to grow from $383 million in 2020 to $538 million by 2030.

Competitor Landscape

Hallow operates within the competitive market of prayer and meditation apps, particularly targeting the Catholic demographic.

Key competitors include:

• Glorify: A Christian prayer tracking and management app.
• Amen: An online platform for daily Catholic prayers.
• PrayerMate: An app for tracking daily prayer habits.
• Pray.com: An app offering daily prayer and bedtime Bible stories.
• Soultime Christian: An app providing daily meditations for relaxation and spiritual growth.
• First15: A daily devotional app.

Marketing & Sales

Main Positioning Values:

Hallow’s core positioning values include:

• Authenticity: Hallow is committed to creating content that is authentically Catholic and fully aligned with Church teachings.
• Accessibility: The app is designed to be user-friendly, making it easy for both Catholics and non-Catholics to engage in spiritual practices and find peace through guided prayer and meditation.
• Community: Hallow fosters a sense of community by enabling users to connect with friends, family, and parish groups, sharing prayer intentions and participating in communal challenges.
• Inclusivity: While rooted in Catholic tradition, Hallow welcomes individuals from all backgrounds interested in Christian spirituality, aiming to help everyone develop a relationship with Jesus.
• Integrity: Hallow maintains a strong commitment to upholding its mission and values, ensuring that all content and partnerships reflect its dedication to faith and service.

Website & Socials

• Website: Hallow.com: ~2.2M visits per month globally (SimilarWeb)
• Top Countries: The majority of visitors come from the US (about 70%), followed by Brazil, the UK, Canada, and the Philippines in smaller proportions.
• Traffic from Social Media: Over 1 million total followers: Predominantly Instagram (842k), Facebook (335k), and YouTube (50k). Smaller audiences on X (29k).

Media Coverage

• Press Mentions: Hallow has been recognized as the leading Catholic meditation app by the Catholic News Agency, emphasizing its prominence in the field of spiritual wellness apps.
• Featured Publications: Regularly updating users and the public about new features and milestones, such as surpassing 10 million downloads and closing a $50 million Series C funding round.
• Partnerships: Hallow expanded its reach by partnering with over 350 prisons across nearly every state, providing inmates with access to prayer resources.

Marketing Strategies

• Target Audience: Hallow specifically targets Catholics, a demographic group numbering around 1.3 billion globally. This focused approach allows them to tailor their messaging and content, fostering a strong sense of community and resonance within this specific religious group.
• Freemium Model: Hallow utilizes a freemium model, offering a free trial period (7 days) to attract users and allow them to experience the app’s value before committing financially.
• Subscription Options: They provide flexible subscription plans, including monthly ($9.99/month) and annual options ($69.99/year), catering to different user preferences and potentially increasing long-term subscriptions with the discounted annual plan.
• Content Marketing: Hallow maintains a blog and produces articles (found on their website) centered around prayer and faith, likely leveraging SEO to attract organic traffic from their target audience actively seeking related content online.
• Partnerships: The app features prominent figures within the Catholic community, such as Jonathan Roumie, Lauren Daigle, and Gwen Stefani. This strategic alignment with influential individuals likely expands their reach and drives downloads, particularly among fans of these figures.
• Habit Formation: Hallow encourages daily and weekly usage by incorporating goal-setting features and push notifications, aiming to cultivate a consistent habit among users and increase long-term engagement.
• Website Traffic: A significant portion of their website traffic comes from direct visits (54.18%) and organic search (38.71%), suggesting strong brand awareness and effective SEO strategies. Social media and referral traffic play a smaller role (2.51% and 3.23% respectively), indicating potential areas for further development.

Product & Innovation

Niche Focus

Hallow’s laser focus on the Catholic demographic allows them to tailor content and features specifically to this audience’s needs and preferences.

Gamification of Prayer

The app incorporates elements of gamification, such as goal setting, progress tracking, and rewards, to motivate users and make prayer more engaging.

Integration of Technology

Hallow leverages technology to make traditional Catholic practices more accessible, convenient, and relevant to a modern audience.

Financials & Metrics

Revenue Sources

• Subscription Fees: Hallow operates on a freemium model, offering basic features for free and premium content through paid subscriptions. They provide both individual and family subscription plans:
  • Monthly Individual Plan: $8.99
  • Annual Individual Plan: $59.99 (approximately $5 per month)
  • Annual Family Plan: $119.99 (for up to six members)
• Bulk Subscriptions: Hallow also offers bulk subscription plans for schools, parishes, and dioceses.

Metrics

• Estimated Annual Revenue: $51 million.
• Total Funding: $105 million
• Latest Funding: $50 million Series C (May 18, 2023)
• Employee Count: Estimates vary between 173 to 227.
• App Downloads: Over 18 million as of November 2024.

Structure & Culture

Structure

• Leadership: Led by its three co-founders – Alex Jones (CEO), Erich Kerekes (CTO), and Alessandro DiSanto (COO).
• Employee Size: Estimated to be between 119 to 239 employees.

Culture

• Mission-Driven: Driven by the mission to help Catholics deepen their faith through prayer and meditation.
• User-Focused: Strong emphasis on user experience and engagement, evidenced by features like progress tracking, personalized content, and reminders.
• Innovation: Likely fosters a culture of innovation to stay competitive in the growing spiritual wellness market.

Impact & Success

Aggregated reviews on the App Store and Google Play highlight user satisfaction with the app’s ease of use, diversity of content, and relevance to daily life.

The guided prayer sessions and seasonal programs are particularly well-received.

Growth & Future

Challenges

• Competition: Navigating the increasingly competitive landscape of prayer and meditation apps, including both secular and faith-based options.
• User Engagement: Continuously innovating and providing fresh content to retain users and maintain engagement.
• Balancing Inclusivity: Addressing the challenge of balancing inclusivity with adherence to Catholic teachings.
• Data Privacy: Navigating data privacy concerns, especially given the sensitive nature of religious information.

Future Plans

• Expansion: Expanding into new markets and languages to reach a wider global audience.
• Technological Advancements: Exploring new features and content formats using technologies like AI and VR.
• Thought Leadership: Taking a leading role in conversations about the intersection of technology and faith.
• Specialized Applications: Potentially developing specialized mental health applications for specific audience segments within the Catholic community.

Key Takeaways for Entrepreneurs

• Don’t fear niche markets: Hallow’s success demonstrates the potential of catering to a specific audience. Instead of diluting your product for mass appeal, consider focusing on a niche and deeply understanding its needs. This targeted approach can lead to stronger brand loyalty and faster growth within that segment.
• Reimagine existing models: Hallow didn’t invent a new product category; they adapted the popular meditation app model for a religious audience. Look for successful models in other sectors and explore how to tailor them to your niche.
• Community is key: Hallow emphasizes community features like “Prayer Families.” Building a strong community around your product can foster engagement, word-of-mouth marketing, and a sense of belonging for users.
• Content as a driver: Hallow leverages content marketing (blog, articles) to attract organic traffic. High-quality content relevant to your target audience can be a powerful tool for user acquisition and brand building.
• Leverage existing influence: Hallow partners with prominent Catholic figures to expand their reach. Identify influencers within your niche and explore collaborations to tap into their audience.