The goal of hygiene is to make profitable Indian businesses as US entry and AI innovation

“January and February are cash flowing,” said Tushar Vashisht, co-founder and CEO of the company, adding that he wanted to ensure that the health agency’s Indian operations remain profitable. It took nearly 13 years to get to this point, and was founded in 2012.

The company’s plan for 2025 has outlined: “Scaling a small but growing business, handling profitable India operations and driving AI innovation,” he said.

Maintain profitable Indian business

Healthify’s direct plan for the Indian business is to consolidate effective things and improve profitability.

Some of this can be attributed to the company’s restructuring exercises in April 2024. According to a report by Inc42, about 150 employees or 27% of the company’s workforce is affected. This is the third restructuring the company has carried out in two years.

“The restructuring is really helpful because we were able to significantly simplify operations in India, resulting in our first cash flow month in January, which looks like the positive quarter of our first cash flow,” Vashisht said.

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The company’s revenue comes primarily from the consumer sector in India, but has also seen its B2B business take off. The revenue of the B2B segment started a year and a half ago and is currently in ₹10-20 million per month. “I want it to be an independent isolation ₹In the next two years, 100 million will be tens of millions. ”

Healthify sees two broad trends in the B2B segment: company health plans and what the company calls “partnerships.”

Business rise

The company’s interest is due to the fact that the company places its app behind a “free value-added” paywall, which provides basic features for free, but can charge for other features. “Since then, not only did the business skyrocket, but we got a lot of inquiries from the company,” he said.

Healthify hopes to continue working with large companies to develop a company’s health plan. Later this month, the company will launch plans for Amazon and Titans.

On the partnership side, the company is in conversation with other entities in the health technology, FIT technology, insurance and diagnostic industries to provide hygiene applications to customers at nominal fees or for free. Vashisht refused to share too many details because the plans have not survived, but said he hopes for an announcement in the coming weeks.

The company has no 1:1 competitor in India, but similar startups in the space include Cure.fit, a health and fitness company founded by Mukesh Bansal and Ankit Nagori, which runs the gymnasium of Cult.fit; Fitterfly, a startup that helps people manage diabetes and lose weight; and Fitelo, the app provides users with disease and weight management services.

Growing in us

Healthify Soft was launched in late December with a snapshot of its calorie counting tool. In February, it launched its artificial coaching lab, which includes hiring local nutritionists, nutritionists and coaches.

Since its launch in December, the company said it has added thousands of users, some of which initial customers have just reached their weight loss goals.

“It should be recognized that the strong competitive landscape of the United States is. It will be a challenge. But, at the same time, it also brings many opportunities as the markets there are growing.

Several established companies in the United States already offer roughly the same services as health agencies, such as Virta Health, Omada Health, Teladoc Health, MyFitnessPal and NOOM.

But Vashisht was not worried.

“What doesn’t exist in the U.S. market is a destructive AI game. “There is a great opportunity to really change the market by adopting our AI-enabled coaching solutions and AI-enabled nutrition tracking solutions.” ”

The company has developed two-part plans for its U.S. strategy. The first phase is to ensure evidence-based results are provided to U.S. customers in the consumer sector, resulting in a growth in user base.

“Despite having established players like MyFitnessPal and Noom, Healthify’s real-time personalized AI coaching at an affordable price and its fitness and nutrition guidance would be a key differentiator from some of the other established players in the US,” said Dr Nita Sachan, venture partner at Silverneedle Ventures. This VC firm invests in deep tech, sustainability and emerging technologies. “Operating in a cost-conscious market like India has installed a focus on affordability, which can be used to offer competitive prices in the U.S. market.”

The second phase involves entering the enterprise sector, which will be conducted later this year.

“In the six months in the U.S., I hope to have millions of dollars in running interest rate business, which will also show signs of success in the B2B region,” the former investment banker said.

Deeper AI drive

Healthify’s existing AI assistant RIA will become a multi-mode that can understand and respond to voice and images. Previously, the assistant could only interact with the application user through text. The company’s goal is to make RIA more conversational and adapt to a specific user. Book an updated version of Health Assistant for all users in the next few weeks.

“In general, this should lead to higher quality products, higher engagement, higher leverage, higher customer-to-coach ratio, higher efficiency, better profit margins,” Vashisht said.

The company has been using enhancements to make its AI products more effective. Also known as RFT, it allows developers to use “expert models” to accomplish a narrow set of tasks in their field. In the case of Healthify, this is health and wellness.

The company is essentially “distilled” from large language models (LLM) to small language models (SLM). Currently, the company combines OpenAI and Anthropic’s LLM.

The company has now proposed a subscription to paywall to access its AI services, and to their surprise, people are willing to pay. “It gives us a lot of weightlifting. It’s another reason why we make a profit. Our AI subscriptions almost doubled overnight,” Vashisht said.

Healthify’s early AI subscriptions used to cost ₹4,000 per year. However, as companies’ investment in AI increases, especially with LLMS distillation of SLM, the costs have dropped.

“Our baseline AI subscription, healthify+, cost ₹Vashisht said it was 1,500 a year, adding that the low cost was the reason they saw “ten millions per month per month” from their AI subscriptions. “This changed the game for us because the product runs about 80% plus gross margin,” he added.

Healthify’s other plans include ₹4,199 per year and Healthifypro ₹4,400 per month.

The company was founded in 2012 by Tushar Vashisht, Matthew Cherian and Sachin Shenoy. Initially, it raised $250,000 from angel investors before Micromax Informatics’ undisclosed seed round. In 2016, Blume Ventures led Healthify’s Series A with Chiratae Ventures, Athera and Inventus Capital Partners.

The company raised $75 million in the 2021 Series C competition, and the U.S.-based Khosla Ventures led the investment. In 2023, it raised $5 million in risk debt. Its latest fundraising round came in October, with Khosla Ventures joining Leapfrog Investments again with Claypond Capital, the family office of healthcare billionaire Ranjan Pai.