AI-focused healthcare tech startup Healthify has raised fresh capital of $20 million, led by existing investor Khosla Ventures, and LeapFrog Investments with new investor Claypond Capital (family office of Indian healthcare billionaire Ranjan Pai). The new $20 million is in addition to a previous tranche of $30 million, which included $5 million in venture debt, raised in 2023.
The funding comes as the company will launch its app in US markets later this year and the majority of the capital raised will be used to fuel its global expansion plans with a primary focus on the US.
“We have conducted extensive alpha testing of our AI products here and have also concluded alpha testing of our training product. We hope to launch our beta app before the end of the year,” said Tushar Vashisht, co-founder and CEO of the company. Mint.
Healthify has a chance to win in the US because its offerings are cheaper than those available there, according to Vashisht.
“The United States is now a basic market with very high costs. A single nutritionist session costs $140, while our programs operate between $5 and $20 a month. Our comparable prices in the US are $80/month or $50/month or $100/month. “We have this tremendous opportunity to play at a lower cost,” he said.
The company has been able to reduce costs because it is built in India and has strong artificial intelligence capabilities, according to Vashisht.
“We have a very high client-to-trainer ratio. Our AI helps our trainer make our meal plans and respond to messages. When someone needs to use human accountability, we have that too, and Ria (Healthify AI nutritionist) also helps them on the backend to do their job,” he said.
On the type of business he expects from the US markets, Vashisht noted that in the first few years it will be a smaller percentage, but within five years, the United States has the potential to generate hundreds of millions of dollars in revenue. “It will be the dominant revenue and I am confident that we will be able to build a billion-dollar global company,” he said.
While the United States will be the main focus in the short term, the company wants to expand to other geographies eventually.
Launch in 50 countries
“With AI, we can also launch in 50 countries, without as much resistance. “That is the mission we want to pursue,” he stated.
The company will be cash flow positive in India in FY25 and plans to increase profitability of the domestic business while most of the focus is on building the business in the US, according to the co-founder.
Healthify reported revenue of approximately $229 crore in FY23, an increase of 24% over FY22. Its losses decreased from $157 crores to $142 crore during the same period.
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