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

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.

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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.”

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