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Mobile health and fitness platform HealthifyMe announced a $12 million Series B round of funding led by Sistema Asia Fund, the India focused fund of Russia's largest Conglomerate. Silicon Valley-based Samsung NEXT, Singapore’s Atlas Asset Management and Japan’s Dream Incubator were the other participants in this round alongside existing investors IDG Ventures India, Inventus Capital, Blume Ventures and Dubai based NB Ventures.
HealthifyMe claims to have grown 3.5 times in 2017 to 4 million users, spread to 200+ cities, and is booking $4.5 million in ARR (Annualized Run Rate) revenue. With more than a million monthly active users, HealthifyMe enjoys about 10 per cent of the Indian market share in the health/fitness category as per AppAnnie.
“We want to help millions of consumers achieve their goals by engaging with nutritionists and other health experts empowered with Artificial Intelligence. "Ria" our AI nutritionist that we introduced last quarter will have a game-changing effect on fitness/nutrition access to Indians,” said Tushar Vashisht, CEO, HealthifyMe.
He added this funding will help them launch in other emerging markets where obesity and lifestyle diseases are growing exponentially. It will also help to expand offerings portfolio to affiliated products and services.
HealthifyMe intends to use this fresh round of funding to deepen its presence in India by offering health foods, diagnostics and insurance products beyond its digital nutrition/fitness services portfolio. The company recently launched in the GCC (Gulf Cooperation Countries) market and is already in the top 3 on Google Play, UAE. Additionally, the company intends to use the funds to further its AI and Data Science capabilities.
“People all over the world associate healthcare mostly with disease treatment, but ideally healthcare should prevent diseases. HealthifyMe team is disrupting this vitally important sector with its technology platform, transforming everyday behaviour of people, and measurably making them healthier. We are happy to back the company in its mission,” said Kirill Kozhevnikov, MD and Partner, Sistema Asia Fund Advisory.
According to data by NewsCorp VCC Edge, private equity investments in healthcare sector between 2013-17 amounted to almost $1 billion with a record number of investments noted in 2015-16. While 2017 saw the number of deals come down, the average ticket size has almost doubled.