Healthify raises $20 million to fuel US expansion

Artificial intelligence-focused startup Healthify has raised $20 million in new capital led by existing investor Khosla Ventures and LeapFrog Investments, along with new investor Claypond Capital (the family office of Indian medical billionaire Ranjan Pai). The new $20 million is on top of an earlier $30 million tranche that included $5 million in venture debt raised in 2023.

The funding comes as the company aims to launch its app in US markets by the end of this year, and most of the capital raised will be used to support its global expansion plans with a major focus on the US.

“We’ve done extensive alpha testing of our AI products, and we’ve also completed alpha testing of our learning product. We hope to be able to release our beta version of the app by 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 US is a very high cost market right now. One nutritionist session costs $140, while our programs run from $5 to $20 per month. Our comparison prices in the US are $80 per month, or $50 per month, or $100 per month. We have a great opportunity to play with a lower price,” he said.

According to Vashisht, the company has been able to keep costs down because it is made in India and uses powerful AI capabilities.

“We have a very high ratio of clients to trainers. Our AI helps our trainer make our meal plans and respond to messages. When someone needs to use human accountability, we have that as well, and they also have Ria (Healthify’s AI nutritionist) on the server helping them do their work,” he said.

Regarding the type of business he expects from the US markets, Vashisht said that in the first couple of years it will be a smaller percentage, but in five years the US has the potential to generate hundreds of millions of dollars in revenue. “It will be a dominant revenue stream and I’m confident we can build a billion-dollar global company,” he said.

Although the main focus will be on the US in the near future, the company wants to expand its activities in other regions in the future.

Launch in 50 countries

“Thanks to artificial intelligence, we can also launch the program in 50 countries without much resistance. This is the mission we want to fulfill,” he said.

According to the co-founder, the company will be cash flow positive in India in FY25 and plans to increase the profitability of the domestic business, while the main focus is on growing the business in the US.

Healthify posted revenue of approx ₹229 crore in FY23, up 24% from FY22. His losses decreased from ₹157 crore to ₹142 crore in the same period.