Healthtech startup HealthifyMe saw its total loss fall by around 10% during the year ended March 31, 2023 (FY23), driven by improving revenue.
In FY23, the healthtech startup reported a total loss of INR 142 Cr, down from INR 157 Cr reported in the previous financial year, the startup’s filings with the Ministry of Corporate Affairs (MCA) showed.
Meanwhile, HealthifyMe’s total revenue from operations went from INR 185.25 Cr in the year ended March 31, 2022, to INR 228.76 Cr during the period under review, witnessing a jump of 23.49% year-on-year (YoY). That was the highest-ever revenue posted by the healthtech startup.
Nutrition & Wellness Coaching Shines: HealthifyMe, which primarily offers dietary and nutritional coaching, along with wellness coaching, reported strong growth from the business vertical. In FY23, the revenue from nutrition and wellbeing coaching stood at INR 139.24 Cr, a nearly 25% increase from INR 111.62 Cr reported a year ago.
Support Services Beef Up The Top Line: Meanwhile, the startup reported a revenue of INR 74.11 Cr from ‘support services’, up around 3% from INR 72.10 Cr a year ago. While HealthifyMe did not specify the exact details of these ‘support services’, these could include revenue from its pro subscription plan and other services.
Opening New Revenue Stream With Products: Interestingly, HealthifyMe also reported product sales of INR 13.90 Cr during the year. That was the first time the startup ever reported product sales, including sales of its smart scale and the continuous glucose monitor (CGM).
What Hurt HealthifyMe’s Bottom Line During FY23?
The startup reported a total expenditure of INR 371.72 Cr during FY23, up 8.23% compared to the INR 343.44 Cr reported during the year-ago period.
Ad Spends Cut Significantly: In FY23, HealthifyMe spent INR 115.90 Cr on advertising and other promotional activities. That was 13% less than the INR 133.19 Cr it had spent during the last financial year, signalling a reduced dependency on advertising to attract new customers.
Employee Benefits Expenses Rise: Even though the healthtech startup fired 150 people in a layoff exercise in December 2022, it reported a 23.7% YoY increase in employee benefit expenses. HealthifyMe spent INR 116.09 Cr paying its employees in FY23, compared to INR 93.85 Cr in FY22.
Big Spending On Healthcare Consultants: HealthifyMe works with healthcare professionals to offer its services. The healthtech startup spent INR 79.23 Cr paying these professionals in FY23, down slightly from INR 80.25 Cr in FY22.
New Entries On The Accounting Book: HealthifyMe reported several new expenses during FY23, mostly related to its line of products launched during the year. For instance, the startup reported spending INR 3.13 Cr on delivery charges and INR 2.21 Cr on packing charges and other device costs.
Founded in 2012 by Tushar Vashisht, HealthifyMe’s health and fitness app leverages AI to deliver measurable results on eating habits, fitness and weight by tracking lifestyle and providing access to coaches, among other benefits.
The healthtech startup raised $30 Mn in its pre-Series D funding round in June this year, led by LeapFrog Investments and Khosla Ventures. The round also saw participation from new investors FinnFund and Van Lanschot Kempen. The startup has raised around $130 Mn across multiple rounds.
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