Healthify Secures $20 Million in Funding, Expands AI-Powered Health Platform Globally

Healthify Raises $20 Million in New Capital, Raising Total Equity to $125 Million

Healthify was the only Indian startup to be featured at OpenAI's DevDay 2024. AI-powered health and fitness app, Healthify (formerly HealthifyMe), announced on October 25 that it has closed a $45 million funding round, led by Khosla Ventures and LeapFrog Investments, and with new participation from Claypond Capital. This latest funding includes $20 million in fresh capital, adding to an earlier investment in 2023. Healthify's total primary equity is now at approximately $125 million. The company is focusing on U.S. expansion while enhancing its AI capabilities. With the new funding, Healthify is preparing to launch its AI-powered platform in the U.S., aiming for a broader global reach. With a user base of over 40 million in India, the company's AI is being adapted to recognize local food items, fitness habits, and dialects, ensuring a personalised experience for users, it claimed. Co-founder and CEO Tushar Vashisht said, "At Healthify, we've been building towards a world where healthy eating is celebrated, and where everyone is empowered to make better choices around food and fitness -- regardless of their ability to pay. 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 U.S., the world's largest health and fitness market." He added that the new funding will aid their mission of making a high-acuity health coach affordable for everyone. The company has been a pioneer in combining AI with human coaching to drive weight loss and behaviour change, delivering one of the best outcome-to-cost ratios in the industry. A Stanford study recently highlighted the effectiveness of Healthify's AI & Human Coach plans. OpenAI has also recognized the app's innovative use of AI at a recent DevDay event. In an exclusive interaction with AIM, Vashisht said that the collaboration with OpenAI is to save millions of lives in a year. "We help test OpenAI's platform and technologies at scale," he said. In India, Healthify has achieved operational profitability and is on track to become EBITDA-positive by the end of the fiscal year. While consumer services remain the core of its business, the company is also pursuing a B2B strategy, focusing on corporate wellness partnerships and collaborations with the diagnostics, insurance, and pharmaceutical sectors to scale health outcomes. Vinod Khosla, founder of Khosla Ventures, commented, "With AI, everyone can have a personal nutritionist and health coach to make the right diet and fitness choices daily. Healthify is already doing this in India, and they are now well-positioned to bring their offering to the U.S."

Healthify raises $20 million in round led by Khosla Ventures, LeapFrog Investments

Claypond Capital, Manipal Group chairman Ranjan Pai's family office, also participated in funding for the health and wellness startup, formerly known as Healthifyme. To date, the company has raised $125 million in primary equity. Health and wellness startup Healthify (formerly Healthifyme) has raised $20 million in a funding round led by Silicon Valley-based Khosla Ventures and LeapFrog Investments. The round also saw participation from Claypond Capital, the family office of Manipal Group chairman Ranjan Pai. This is an extension of a previous round where the company raised $25 million through convertible notes, which have now been converted as part of the current funding round. The funds will be used for its global expansion, particularly in the US, and for enhancing its artificial capabilities (AI) capabilities. "Step one will be to build a very strong team in the US and increase our development centre in Bangalore for the US as well," cofounder and chief executive Tushar Vashisht said. Founded in 2012 by Tushar Vashisht, Sachin Shenoy and Mathew Cherian, the company offers services such as nutrition and calorie tracking as well as fitness coaching. Healthify has a conversational AI coach, Ria, and a tool called 'coach copilot' that collaborates with human trainers. It also has a photo-based nutrition tracker, Snap. "Almost half our subscribers in India are AI subscribers and the other half are AI plus coach subscribers. So, in that sense, 100% use AI," he said. The platform claims to have 40 million users. Healthify's operations have achieved operational profitability, with the company expected to become earnings before interest, taxes, depreciation and amortisation (Ebitda) positive by the end of FY25. According to Vashisht, the company generated a revenue of around Rs 200 crore in FY24. "Our focus in the near term has been profitability for our India business. This fiscal year itself, we would deliver India as a cash flow-positive business. We're already operational positive, but we want to get to cash flow positivity in the next two to three months," he said. "Next year, we'll not have much growth in India. It will be slow growth. So FY25 will be roughly 200 crore only, but it will be heavily profitable. After that, we expect India to grow at a moderate pace, 30 to 40% is what I estimate. Whereas the US is where we'll drive a lot of forward growth," he added. The company is also looking at expanding its business-to-business (B2B) operations by partnering with more diagnostics, insurance and pharmaceutical firms. Its B2B clients include Amazon, Micro Labs and Accenture. The company has raised a total of $125 million in primary equity to date. Commenting on the investment, Vinod Khosla, founder, Khosla Ventures, said, "With AI, everyone can have a personal nutritionist and health coach to make the right diet and fitness choices on a daily basis. Healthify is already doing this in India, one of the world's largest consumer markets, and they are now well positioned to bring their offering to the United States."

Healthify Raises $20 Mn For US Expansion

The startup said it has achieved operational profitability in India and is on track to become EBITDA-positive by the end of FY25 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.