Health, Fitness Platform HealthifyMe Secures $30mn In Pre Series D Round

LeapFrog Investments, Khosla Ventures, FinnFund, and Dutch investment firm Van Lanschot Kempen led a USD 30 million pre-series D funding round for health and fitness platform HealthifyMe.

Existing investors Unilever Ventures, Blume Ventures, Chiratae Ventures, and Healthquad joined the round as well. According to the startup, the investment includes a mix of equity and venture loans.

The new funds will be used to further develop the Bengaluru-based company's artificial intelligence (AI)-powered product. It previously introduced Ria, an AI-powered virtual assistant that offers diet and fitness advice in over ten languages, in 2017. With the incorporation of generative AI, HealthifyMe hopes to assist nutritionists in providing more customised advise to customers, according to a statement.

The Chiratae Ventures-backed healthtech startup stated in January 2021 that by merging AI with human expertise throughout the years, gross margins increased from 30 per cent to 70 per cent, and it expects generative AI to be a game-changer in driving scale and profitability.

According to the company, it is also looking to enhance Smart Plans, its AI-enabled health solution that accounts for half of the company's current paying users. It launched a glucose monitoring patch last year, competing with a similar product from Nexus Venture Partners-backed Ultrahuman.

According to the company, HealthifyMe aspires to achieve an annual recurring revenue (ARR) of USD 50 million in the next months, with the goal of becoming the largest health and fitness app outside of the United States and China. It has reached a revenue run rate of USD 25 million for January 2021, representing a 100 per cent increase over the previous year.

The company competes with Fireside Ventures-backed Cult.fit and Fitterfly, as well as Trifecta Capital-backed Goqii, all of which provide health, wellness, and fitness-related services. Cult.fit has received almost USD 600 million in investment to far.

HealthifyMe was formed in 2012 and has already raised over USD 100 million. It serves over 35 million consumers in 300 cities and employs over 1,000 coaches to help individuals lose weight, develop healthier eating habits, and improve their mental health. It employs 200 people and has offices in Bengaluru, Kuala Lumpur, and Singapore.