HealthifyMe posts Rs 185 Cr revenue in FY22, losses surge 8X

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HealthifyMe posts Rs 185 Cr revenue in FY22,
losses surge 8X
Consumer-focused healthcare companies were on
the rise during peak covid due to surge
in demand. One such company is Khosla
Ventures-backed HealthifyMe which managed to
grow more than two fold during the fiscal year
ending on March 31, 2022, or FY22. HealthifyMe
Wellness Private Limited, the Indian entity
of the group, posted Rs 185.25 crore
revenue in FY22, a 2.15X jump from Rs
86.05 crore in FY21, according to the
companys standalone financial statements filed
with RoC. FY22 was a productive period for the
company during which it raked in 75 million in
its Series C funding round last year led by
LeapFrog and Khosla Ventures at a
valuation of 500-600 million. The company
has raised over 100 million to date. The
company also conducted an ESOP buyback
program worth 12 million to provide
liquidity to almost 100 of its current and
former team members. HealthifyMe, a decade old
company launched by Tushar Vashisht, Sachin
Shenoy and Mathew Cherian, uses a combination of
software, wearable devices, and fitness trainers
to help people
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reach their fitness goals. It claims to be used
by over 30 million users and has 2,000 coaches
across India and Southeast Asia to support these
users. As per Fintrackrs analysis, sales of
nutrition and wellness services are the
major source of revenue for HealthifyMe which
increased 96 to Rs 111.63 crore in FY22 from Rs
56.96 crore in preceding fiscal year (FY21).
The Bengaluru-based company also booked Rs
72.1 crore in FY22 as sale of support services
to the parent company. The figure stood at Rs
27.27 crore a year ago. Moving over to the cost
sheet, we see that advertisement and promotion
was the largest cost center for HealthifyMe
forming 39 of the overall cost which grew
5.2X to Rs 133.18 crore in FY22. Employee
benefit expenses and fees to healthcare
consultants are the other major expenses
followed by the cost of advertisement for the
health and wellness company which surged 3.3X and
3.1X respectively. These costs shot up to Rs
93.84 crore and Rs 80.25 crore in FY22 from Rs
28.13 crore and Rs 25.47 crore in FY21. Software
and subscription cost for HealthifyMe shot
up 3X to Rs 8.13 crore in FY22. The
company added another Rs 3.21 crore as
legal and professional charges pushing the
overall cost 3.24X to Rs 343.44 crore in FY22
from Rs 105.82 crore in the previous fiscal year
(FY21). With a huge surge in the overall cost,
losses of the company jumped 8.26X to Rs 157
crore in FY22 from Rs 19 crore in the preceding
financial year (FY21). As the overall cost
ballooned, cash outflow from operating
activities also spiked 20X to Rs 84 crore in
FY22. On a unit level, HealthifyMe spent
Rs 1.85 to earn a single unit of
operating revenue, whereas the figures for the
same stood at Rs 1.23 in the previous year (FY21).
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In April, HealthifyMe claimed that it had crossed
50 million (around Rs 375 crore) revenue run
rate in January 2022, and aims to cross 100
million (nearly Rs 800 crore) in ARR in the next
8 months. It has also set a target to cross
turnover of 500 million by 2025. As per media
reports, HealthifyMe may plan to go public by
2024. After the first wave of the coronavirus
pandemic, HealthifyMe also launched
HealthifyStudio last year which offers live group
workout sessions. The company competes with
GOQii, Tata Digital- owned Cure.fit while
streaming platforms such as Disney Hotstar
and YouTubers are its indirect competition. In
June 2020, Disney Hotstar entered into a
strategic alliance with Brilliant Wellness,
Cure.fit and Sarva to offer global health and
wellness content to its subscribers. The firms
ambitious targets are a direct function of
the funds it has raised, or vice versa,
depending on your perspective. But there is
little doubt that while the managed health
services or support market has emerged in a
big way in India, it is tough to predict
just how far this market can grow. Will it
prove to be a shallow market with a potential 100
million active users, or could it lend itself to
deeper penetration with 150 million users?
HealthifyMe is certainly looking to find that out
in the coming months, seeing the rate at which it
is burning through advertising campaigns to
discover new users.