Wellthy Therapeutics, a digital therapeutic company has secured Rs 30.33 crore ($4.2 million) in a pre-Series A funding round from early-stage venture capital firm Saama Capital.
The fresh funding for the Mumbai-based firm has come after two years when it had raised a seed round led by Ranjan Pai’s family office MEMG.
According to regulatory filings, Wellthy has allotted 9,39,983 pre-Series A compulsorily convertible preference shares (CCPS) and 10 equity shares to Saama Capital at a price of Rs 322.673 per share to raise the investment.
In March of 2018, it had raised Rs 13.5 crore or $2.1 million in seed funding from MEMG while pharma giant Cipla had picked up 11.71% stake for Rs 10.5 crore in February last year.
Founded by Abhishek Shah, Prayat Shah and Aradh Pillai in 2015, Wellthy focuses on type 2 diabetes care through a mobile app which lets users log their meals and monitor their blood sugar levels over time. The app is available for Android and iOS users in multiple Indian languages.
According to Entrackr’s calculation, Wellthy has been valued at over $23 million post this investment. Saama Capital will acquire a 16.21% stake in the company while promoters still hold 43.73% ownership in the five-year-old venture.
As per a study, about two-thirds of the Indian population die from poorly managed chronic health conditions which are primarily driven by lifestyle and habit. To control this, the company claims to have designed clinically validated behavioural interventions to help people change their behaviour and reduce their risk of chronic disease.
For now, the company solely focuses on diabetes management and counts Glooko, Holmusk and mySugr as competitors.
A look at Wealthy’s financials shows the company’s revenue from operations increased by 10.4 times to Rs 89.73 lakh in FY19 from Rs 8.56 lakh in FY18. While the total expenditure incurred by the company during the year amounted to Rs 9.84 crore, a 2.56 times increase as compared to the previous fiscal. Its net losses stood at Rs 8.69 crore.