Healthify raises $20M to fuel U.S. expansion

Healthify, an artificial intelligence-focused health tech startup, has raised $20 million in new funding, led by existing investors Khosla Ventures and LeapFrog Investments, as well as new investor Claypond Capital, the family office of Indian healthcare billionaire Ranjan Pai. cast. The new $20 million is in addition to the previous $30 million and includes $5 million in venture debt raised in 2023.

The financing comes as the company plans to launch its app in the U.S. market by the end of this year, and most of the money raised will be used to fuel its global expansion plans, focusing mainly on the U.S. market.

“We’ve done extensive alpha testing of our artificial intelligence product here, and we’ve also completed alpha testing of our coaching product. We hope to be able to release our beta app by the end of the year.” Co-founder of the company said Tushar Vashisht, CEO. Mint.

Vashisht said Healthify has a chance to win in the U.S. because its products are cheaper than there.

“The U.S. is a very high-cost market right now. A nutritionist session costs $140, while our program costs $5 to $20 a month. Our comparable prices in the U.S. are $80 a month, $50 a month Or $100 a month. We have this huge opportunity to compete at a lower cost,” he said.

Vashisht said the company was able to keep costs down because it was established in India and has strong artificial intelligence capabilities.

“We have a very high client-to-coach ratio. Our AI helps our coaches create meal plans and respond to messages. When someone needs to use human responsibilities, we have that too, and they also get Ria (Healthify’s human smart nutritionists) to do their job,” he said.

Talking about the type of business in the U.S. market, Vashisht noted that in the first few years, the percentage will be smaller, but after five years, U.S. revenue has the potential to reach hundreds of millions of dollars. “This will be a major revenue stream and I believe we can build a multi-billion dollar global company,” he said.

While the U.S. will be the main focus in the near term, the company hopes to eventually expand to other regions.

Launched in 50 countries

“With AI, we can launch in 50 countries without too much resistance. That’s the mission we want to pursue,” he said.

The co-founder said the company will be cash flow positive in India in FY25 and plans to improve domestic business profitability while putting much of the focus on building the US business.

Healthify’s revenue is approx. $229 crore in FY23, an increase of 24% over FY22. Its loss is reduced to $157 Crores Rs. $142 crore during the same period.