Deepinder Goyal-backed Ultrahuman raises $35 mn from existing investors

The company operates at a gross margin of 60 percent, he added

Ultrahuman, the wearable tech startup, has raised $35 million from Blume Ventures, Steadview Capital, Nexus Venture Partners, Alpha Wave and Zomato co-founder Deepinder Goyal in its Series B round. Of the total amount, $25 million has come in exchange for equity while the remaining $10 million is the debt component.

The company, which makes wearables that help in tracking fitness and nutrition levels, will use the money to enhance its manufacturing capacity and deepen its research in the health tracking space.

During the same period, the company has grown in scale. In FY21, the Bengaluru-based startup had a revenue of Rs 2 crore which increased to Rs 24 crore in FY23. During the same period, its losses increased from Rs 3 crore to Rs 57 crore, as per Tracxn, a private markets data provider.

“We were breaking even for some months last year but now we’ve been generating cash, including the whole of last quarter. We typically operate at an EBITDA margin of 4-5 percent and in about six months’ time we want to be pushing up the margin to about 10-15 percent,” said Mohit Kumar, CEO and co-founder of Ultrahuman. The company operates at a gross margin of 60 percent, he added.

Ultrahuman offers services like continuous glucose monitoring (CGM) and sells devices such as smart rings, among several others.

Expanding its retail footprint into regions like London, Singapore, Dubai has been a key driver of growth, Kumar said while adding that the company is present in 150 retail outlets.

Retail and Direct-to-consumer (D2C) channels equally bring in 60 percent of sales for the company while e-commerce and B2B partnerships are responsible for the remaining.

Ultrahuman was started by Kumar and Vatsal Singhal, who previously co-founded Runnr, a company which later merged with Zomato.