Healthify raises $20M in fresh capital to drive US expansion
The round was led by existing investors Khosla Ventures and LeapFrog Investments, with new participation from Claypond Capital, the family office of Ranjan Pai.
Healthify, an AI-powered health and fitness app, has announced the closure of its $45 million in financing round, consisting entirely of primary capital. The round was led by existing investors and , with new participation from Claypond Capital, the family office of Ranjan Pai.
The fresh capital comes at a time as the firm accelerates its global expansion efforts, with a focus on foraying into the US market and advancing its AI capabilities.
Of the total $45 million raised in this round, the new $20 million in new funding adds to an earlier tranche secured in 2023.
“Our hope is to now make Healthify global. We have some of the highest outcomes-to-cost ratio in the industry, because we built in India, are very AI first, our costs are very low, but our outcomes are proven to be very high. It's time to take what we've done in India and take it global — that's what we intend to do,” Tushar Vashisht, Co-founder and CEO, Healthify told YourStory.
“A vast majority of these spends will be spent on expanding globally, specifically in the US and within that, also specifically in building a really great team,” he added.
The Singapore-headquartered firm is also enhancing its AI to cater to different languages and cultures across markets. The company’s AI is being fine-tuned to recognise common food items, local dialects, and fitness habits, to ensure that users in the US receive personalised and relevant health guidance.
"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," said Vinod Khosla, Founder, Khosla Ventures.
Healthify, which has built its platform on top of a 40 million Indian user base, has conducted alpha tests in the US and plans to do a full launch within coming months.
The company has also integrated AI alongside with human coaches to derive outcomes in behaviour change and weight loss, to attain some of the highest outcome-to-cost ratios worldwide.
Ranjan Pai, Claypond Capital added, “AI has the potential to exponentially improve health outcomes. Healthify has proven that in India at scale and I wish them all the best as they go global.”
The company is aiming to achieve EBITDA-positive status by the end of the fiscal year.
"We are focused on driving profitability. Before FY25 concludes, we will be generating positive cash flow in India. Profitability has been our core focus," Vashisht said.
When asked about the company's valuation, he added, "It's not less than $100 million and not more than $1 billion—it's in that zone."
A recent study by Stanford University has also underscored the notable weight loss achieved through the company’s AI and Human Coach programs.
Additionally, Healthify was recognised by OpenAI at their recent DevDay event for its efforts in multilingual and multi-modal AI nutrition coaching.
While the consumer segment remains its primary focus, Healthify also follows a B2B growth strategy by expanding corporate wellness partnerships and exploring collaborations with diagnostics, insurance, and pharmaceutical firms.
“We expect the biggest growth in the next 5 years to happen from the US — there’s no doubt about that. That’s where we hope to build a multi-hundred dollar business. In the near term, we also expect growth to come from a lot of B2B partnerships in India,” Vashisht explained.
Vashisht also shared that an IPO isn't on the horizon just yet, but the company will explore public markets as a funding option once the India business turns profitable.
Formerly known as HealthifyMe, Healthify is an AI-powered health and fitness platform which combines AI with human expertise to offer measurable health outcomes. The platform currently caters to 40 million users across 300+ cities, along with a network of more than 600 coaches to offer personalised guidance on nutrition, fitness, and overall wellness.
“Healthify has been pioneering the use of AI since 2017, and continues to lead the field in leveraging AI to amplify the impact of its coaches and create better health outcomes for its users. We are thrilled to back the company in this round, to seize the potential of newer and more powerful AI models, which can supercharge their growth and bring them closer to their ambition of touching a billion lives,” said Biju Mohandas, LeapFrog Investments.
Edited by Jyoti Narayan