Khosla Ventures, others invests $20 million in Bengaluru-based Healthify

Healthify, formerly known as HealthifyMe, a health and wellness platform, has raised $20 million in a new funding round.

The round was led by existing investors Khosla Ventures and LeapFrog Investments, with participation from Claypond Capital, the family office of Indian healthcare billionaire Ranjan Pai.

The latest investment takes its all-time raise to $125 million.

Expansion into the US Market

With this latest investment, Healthify aims to accelerate its expansion into the US market. A significant portion of the funds will be used to enhance its AI-powered nutrition and fitness coaching capabilities. 

The startup plans to build a strong team in the US and increase its development centre in India’s Silicon Valley, Bengaluru to cater to this new market. 

AI-Driven solutions and global growth

Founded in 2012 by Tushar Vashisht, Sachin Shenoy and Mathew Cherian, Healthify is known for integrating AI-driven tools into its health and fitness platform. The startup offers services like nutrition tracking, fitness coaching, and a conversational AI coach, Ria.

It also provides a feature called ‘coach copilot,’ which collaborates with human trainers. According to Vashisht, almost half of the platform’s Indian subscribers use AI-driven features, while the rest combine AI tools with human coaching. 

Healthify’s AI capabilities are being fine-tuned to meet the cultural preferences and language requirements of US users.

With a user base of over 40 million and operations across 300 Indian cities, Healthify is now setting its sights on international markets, starting with the US.

Financial performance and future Plans

On the financial front, Healthify’s Indian operations have achieved operational profitability, with the company projecting EBITDA-positive results by the end of FY25.

Vashisht shared that the company expects its India business to be cash flow positive within the next few months. For FY24, Healthify reported a revenue of approximately Rs 200 crore and is expected to maintain this level for FY25, with slow growth anticipated in India.

However, the focus on the US market is projected to drive substantial future growth, with the potential to generate hundreds of millions of dollars within five years.

Partnerships and B2B expansion

In addition to its consumer offerings, Healthify also operates in the business-to-business (B2B) sector, partnering with major companies in diagnostics, insurance, and pharmaceuticals.

Some of its key B2B clients include Amazon, Micro Labs, and Accenture. The startup plans to continue expanding its B2B operations in the coming years, leveraging its AI capabilities to offer more affordable health and wellness solutions compared to existing alternatives in the US.

Commenting on the investment, Vinod Khosla, founder of 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.”