Health and fitness app HealthifyMe on Tuesday said it has seen a significant acceleration in business with a strong growth in user base, and is on track to touch USD 400 million-revenue run rate (over Rs 2,900 crore) by the end of FY24-25.
The company crossed USD 25 million annualised revenue run rate last month, 25 per cent higher than the projections the company had made in the last quarter.
Revenue run rate is a term used in online retailing to indicate the total value of merchandise sold through the marketplace over a certain period of time.
"We are now all set to cross USD 50 million in ARR (Average Revenue Run Rate) in the next 12 months and are targeting a turnover of USD 400 million by March 2025. HealthifyMe has seen more than 100 per cent growth over the last one year with gross margins as high as 75 per cent," HealthifyMe Co-Founder and CEO Tushar Vashisht told PTI.
The active paying subscriber base crossed 1.5 lakh, triple that of last year, and is poised to touch 2.2 million paying users by March 2025, he added.
The outbreak of the pandemic pushed HealthifyMe to diversify its offerings and launch new initiatives like HealthifyStudio and Coach Plus Plans and these have further lifted the company's growth.
HealthifyStudio — which marked HealthifyMe's entry into the online workout space — has become a USD 2.5 million average revenue run rate business within seven months of launching and is contributing 10 per cent of the topline.
Similarly, Coach Plus plans — which combine diet and fitness coach guidance with doctor's consultations for users with medical conditions like Diabetes, Hypertension, Thyroid, Cholesterol, and PCOS — is now contributing about USD 4 million ARR and accounts for around 15 per cent of the company's overall revenues.
"2020 has been a massive year for us that has crunched the growth that we would have seen in a couple of years into the last few quarters. Further, we have witnessed a strong start to 2021 and can confirm that the momentum in the online health and fitness space is continuing to grow with time," Vashisht said.
He added that HealthifyStudio accounts for 10 per cent, Coach Plus Plans (with doctor consultations) 15 per cent, Smart Plans 25 per cent and Coach plans (core business) 50 per cent of the current revenues.
Vashisht said most of HealthifyMe's growth has happened on the back of its AI-powered smart plans which are now responsible for 50 per cent of the 1.5 lakh paying subscribers.
This growth has been achieved despite reduction in marketing spend by 25 per cent compared to January 2020.
"The growth has been due to the organic lift it witnessed as people from all walks of life became more health-conscious. HealthifyMe has also seen significant traction for its plans globally with 25 per cent revenues now being contributed by its international operations," he said.
While the India business has been operationally profitable since April 2020, Vashisht said the company expects to achieve an overall EBITDA profitability for India in the next 12-14 months. International markets are expected to contribute 50 per cent to the targeted turnover in March 2025.
EBITDA stands for Earnings Before Interest, Taxes, Depreciaton and Amortisation.
Apart from India, HealthifyMe is available in Malaysia and Singapore.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Tue, February 16 2021. 16:55 IST
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