HealthifyMe Secures $30 Mn in Funding from LeapFrog and Other Investors

HealthifyMe, a health and fitness platform based in Bengaluru, has successfully raised $30 million in a pre-Series D funding round. The funding was led by LeapFrog Investments, Khosla Ventures, FinnFund, and Van Lanschot Kempen, with participation from existing investors Unilever Ventures, Blume Ventures, Chiratae Ventures, and Healthquad. The investment consists of a combination of equity and venture debt. HealthifyMe plans to utilize the funds to further enhance its artificial intelligence (AI)-powered product offerings.

The company introduced its AI-powered virtual assistant named Ria in 2017, which provides nutrition and fitness advice in over 10 languages. By integrating generative AI into its platform, HealthifyMe aims to assist nutritionists in delivering personalized advice to customers. The firm believes that the integration of AI with human expertise has significantly contributed to its gross margins, which grew from 30% to 70% between January 2020 and January 2021. HealthifyMe expects generative AI to play a pivotal role in driving scalability and profitability.

One of HealthifyMe's key offerings is Smart Plans, an AI-enabled health program that currently accounts for half of the company's paid subscribers. The company plans to upgrade Smart Plans and further enhance its AI capabilities. In addition to its virtual assistant and AI offerings, HealthifyMe ventured into the glucose monitoring market by introducing a glucose monitoring patch, competing with a similar product backed by Nexus Venture Partners-backed Ultrahuman.

HealthifyMe has set ambitious targets for growth. It aims to achieve annual recurring revenue (ARR) of $50 million in the coming months and become the largest health and fitness app outside of the United States and China. The company's revenue run rate for January 2021 exceeded $25 million, representing a 100% growth compared to the previous year.

In a highly competitive market, HealthifyMe faces competition from other health, wellness, and fitness platforms such as Cult.fit and Fitterfly (backed by Fireside Ventures), as well as Goqii (backed by Trifecta Capital). Cult.fit, in particular, has secured over $600 million in funding to date, showcasing significant interest and investment in the sector.

With the latest funding round, HealthifyMe is well-positioned to advance its AI capabilities and expand its product offerings. The integration of generative AI and the enhancement of Smart Plans will provide customers with even more personalized and effective health and fitness solutions. As the company continues to grow, it aims to solidify its position as a leading player in the health and fitness industry, both in India and on a global scale.