Health and fitness startup HealthifyMe’s parent company, HealthifyMe Wellness Private Limited, saw its net loss increase more than 8 times to INR 157 Cr in the financial year 2021-22 (FY22), according to the company’s regulatory records.
Founded in 2012 by Tushar Vashisht and Sachin Shenoy, HealthifyMe’s health and fitness app leverage AI to provide measurable results on eating habits, fitness, and weight by tracking lifestyle and offers access to coaches, among other benefits.
In April, the startup said it crossed $50 Mn in revenue run rate (ARR) in January 2022 and that it was aiming to cross $100 Mn in ARR in the next few months. HealthifyMe is targeting a turnover of over $500 Mn by 2025.
Last July, the startup raised $75 Mn in a Series C funding round led by LeapFrog and Khosla Ventures with participation from HealthQuad, Unilever Ventures and others. With the fundraising, the startup has also expanded its services globally, with North America being the main focus.
HealthifyMe’s losses increased despite a 115% increase in operating revenue. The startup posted total operating revenue of INR 185.2 Bn in FY22 compared to INR 86 Bn in FY21.
HealthifyMe’s revenue in India peaked at INR 111.6 Cr in FY22, almost double last year’s INR 56.9 Cr. The startup generated INR 73.6 Mn in revenue for the year from operations outside of India compared to INR 29.1 Mn in FY21. It is present in Southeast Asian countries such as Malaysia and Singapore.
The consumer-centric healthcare startup reported total spending of INR 343.4 Bn in FY 22 compared to INR 105.8 Bn in FY 21, where spending for advertising and promotions contributes the most.
HealthifyMe spent INR 133.2 Bn on promotions and advertising in fiscal year 22 compared to INR 24.5 Bn in fiscal year 21. The next major portion of the subsequent spending was on benefits, with the startup spending INR 93.8 Bn in FY 22 compared to VND 28.1 Bn in FY 21.
In August 2021, HealthifyMe announced a $12 Mn (INR 90 Bn) stock buyback program for its employees to provide cash to approximately 100 current and former key members. Another large portion of its total expenditure, INR 93.8 Cr, was included in the miscellaneous spending category in FY 22. It stood at INR 42.7 Cr in FY 21.
In addition, HealthifyMe also spent INR 8.1 Bn on subscription fees in fiscal year 22, more than tripling over the same period last year (YoY). The company’s legal fees also nearly tripled in FY22 to INR 3.2 Bn.