Healthify slashes net loss by 38% in FY24 as both revenue, employee costs drop

Khosla Ventures-backed Healthify, which offers an AI-powered health and fitness app, has managed to cut its losses by 38% to Rs 88 crore in FY24 compared with Rs 142 crore last fiscal, as per its regulatory filing. 

HealthifyMe Wellness Private Limited, the Indian entity of the group, clocked a standalone operating revenue of Rs 206.3 crore in FY24, a drop of 9% from Rs 228.7 crore earned in FY23. 

The Bengaluru-based firm’s total expenses slid to Rs 295 crore for FY24, down 20% compared with Rs 371.7 crore in the previous year, largely due to lower employee costs and a reduction in advertisement expenses.

The startup’s employee benefit expenses in FY24 saw a 27% year-on-year decline to Rs 84.9 crore, compared with Rs 116 crore in the corresponding year. The company had laid off 27% of its workforce, of around 150 employe earlier this year.

Last month, Healthify announced the closure of its $45 million financing round, consisting entirely of primary capital. The round was led by existing investors Khosla Ventures and LeapFrog Investments, with new participation from Claypond Capital, the family office of Ranjan Pai.

Of the total $45 million raised in this round, the new $20 million in new funding adds to an earlier tranche secured in 2023.

Healthify, whose platform has amassed a 40 million Indian user base, has conducted alpha tests in the US and plans to do a full launch within the coming months. The company has also integrated AI alongside human coaches to derive outcomes in behaviour change and weight loss to attain some of the highest outcome-to-cost ratios worldwide. 

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.