Healthify Raises $20 Mn For US Expansion

Bengaluru-based healthtech startup Healthify (formerly HealthifyMe) has raised an additional $20 Mn to close its Pre-Series D round at $45 Mn. The round was led by existing investors Khosla Ventures and LeapFrog Investments, and also saw participation from new investor Claypond Capital, the family office of Ranjan Pai. 

The startup raised $30 Mn in June last year, of which $25 Mn was equity funding and $5 Mn was venture debt.

In a statement, Healthify said it would use the fresh capital for global expansion, with focus on foraying into the US market, and advancing its AI capabilities.

Founded in 2012 by Tushar Vashisht, Healthify offers a health and fitness app that leverages AI, along with recommendations from human coaches, to offer tailored food and workout solutions. It also offers B2B corporate wellness solutions in partnership with diagnostics, insurance, and pharmaceutical firms. 

The startup claims to serve over 40 Mn users across more than 300 cities with more than 600 coaches. With the latest fundraise, the startup said its total equity funding till date has increased to $125 Mn. Healthify said it has achieved operational profitability in India and is on track to become EBITDA-positive by the end of FY25. 

It is pertinent to note that Healthify laid off around 150 employees earlier this year in a restructuring exercise aimed at making its India business EBITDA profitable and to expand to the US.

The startup said that it has conducted successful alpha tests in the US and is eyeing a full-fledged launch in the coming months. 

“After delivering outcomes at scale in India with our unique blend of AI and human coaching, we’re thrilled to bring this approach to the US, the world’s largest health and fitness market. With this funding, we’re one step closer to achieving our mission of putting a high-acuity health coach in every person’s pocket,” Vashisht said on the funding. 

On the financial front, Healthify’s net loss declined 10% year-on-year to INR 142 Cr in FY23. Operating revenue rose 23.49% to INR 228.76 Cr from INR 185.25 Cr in FY22. 

The development comes at a time when a number of healthtech startups have emerged in the country over the last few years amid rising awareness about fitness and nutrition. Indian healtech startups raised a cumulative funding of $7 Bn between 2014 and June 2024.