Health and fitness startup HealthifyMe has raised $75 million in a Series C round led by US-based LeapFrog and health-tech focused venture capital firm Khosla Ventures. HealthQuad, Unilever Ventures, and Saudi Arabia-based public investment fund Elm also participated in the round along with existing investors Chiratae Ventures, Inventus Capital and Sistema Asia Capital.
It takes the total capital raised by HealthifyMe to over $100 million till now.
The company will use the funds to expand in India and Southeast Asia, make inroads into North America, as well as to acquire relevant companies in the digital health and fitness space.
It also intends to double its current engineering and design strength. It will furthermore be hiring senior leadership members across operations, marketing, human resource and technology.
According to the World Health Organisation, almost 40 percent of all adults globally - 2 billion people - are overweight or obese resulting in 4 million deaths per year. Through the pandemic, the global market for digital health, weight loss and condition management grew rapidly as consumers continued to care more for their health, manage their chronic conditions and find ways to be in shape from the comfort of their homes.
HealthifyMe doubled its user base and revenue in the last one year during the pandemic. It crossed 25 million downloads recently and is on track to hit $50 million ARR within the next six months.
While HealthifyMe’s base has been India, it has been expanding internationally and now nearly 25 percent of its revenues come from outside India. In several markets such as Malaysia and Singapore, HealthifyMe has demonstrated being able to localise its offering and establish product-market fit in local populations beyond Indian expats and it intends to replicate the same in North America in the near future.
HealthifyMe’s growth is led by its coaching subscription plans for weight loss and disease reversal.
The company also intends to open an office and build a team in the Bay Area and in Southeast Asia to help expand further locally. It also intends to hire over 1,000 trainers and coaches this year itself.
Leapfrog is one of the world’s largest impact-oriented private equities having raised over $2 billion and holding a long track record in healthtech and fintech in the region.
Khosla Ventures on the other hand is one of the pre-eminent health-tech and AI-focused VC funds in the world with over $5 billion in management.
"We are already the market leaders in India and Southeast Asia and by combining AI and human empathy, we can deliver results in weight and lifestyle disease management at a fraction of the cost possible today. With our Series C, we are excited to take our offerings global, North America being a key part of the plan. We are looking forward to hiring and partnering with people around the world who are passionate about using technology to drive positive behaviour change," said Tushar Vashisht, Co-founder and CEO, HealthifyMe.
"Digital health and fitness have leapt forward in the pandemic times and this space will see several unicorns in the next 2-3 years. I have been tracking HealthifyMe for a few years now. What they have achieved in India with their AI coaching solution at scale is truly pioneering for the world. We are excited about the potential as they scale globally specifically in North America, where 2 out 3 adults are overweight or obese," Vinod Khosla, Founding Partner at Khosla Ventures.HealthifyMe caters to more than 25 million users in 300 cities with over 1500 coaches. The company delivers measurable results on eating habits, fitness, and weight through tracking lifestyle, providing access to human coaches and its artificial intelligent nutritionist.