Pristyn Care’s fitness tech biz to raise up to $75 mn
BeatXP, the direct-to-consumer (D2C) fitness-focused technology brand owned by Pristyn Care, is looking to raise $50-75 million, valuing it at around $400 million, said three people with knowledge of the plans.
“The idea is to hive it off and raise money on the books of BeatXP,” the first person cited above said.
Started in 2021, BeatXP sells fitness technology products such as wearable watches, massagers, earphones, and gym equipment, among others.
“The company is seeing its revenue run rate of more than ₹200 crore and is being valued at around $400 million,” said another person cited above.
The growth the wearable and fitness-tech industry has seen in the last 24-36 months makes BeatXP an ideal candidate to raise capital. According to the people cited above, the subsidiary is performing really well for Pristyn, at a time when growth in the core business has been sluggish.
A mail to the spokesperson of Pristyn remained unanswered.
“The company is planning to launch and enter a couple of new categories. While it has already informed the shareholders about the plans to raise money, the deal would likely be four to five months away,” the third person added.
Pristyn was founded in 2018 by Harsimarbir Singh, Vaibhav Kapoor and Garima Sawhney to provide patient-centric healthcare services from disease to health. It last raised $100 million from investors led by Peak XV (formerly Sequoia Capital) in December 2021, valuing it at $1.4 billion. The company, which counts Tiger Global, Winter Capital, Epiq Capital, Hummingbird Ventures, among others, as its investors, has so far raised $177 million across various rounds.
Per a report by Entrackr, the company saw a 45% growth in revenue to ₹453 crore in FY23, even as its losses widened by 38.2% to ₹383 crore in the last fiscal year. The Gurgaon-based firm’s revenue grew to ₹453 crore in FY23, from ₹313 crore in FY22, according to its financial statements from the Registrar of Companies (RoC).
Income from healthcare services was ₹338 crore, accounting for 75% per cent of its total operating revenue, while the sale of medical health products and advertising services contributed the remainder.
The parent has been looking at cutting its losses and move towards stronger unit economics. In 2023, the company laid off 300 of its employees to cut costs. The company is also embroiled in a legal battle with the founders of Lybrate Inc., a platform it acquired in 2022.
According to various estimates, India accounts for a quarter of the global wearables market, which includes smartwatches, fitness trackers, and AR headsets.
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Published: 04 Feb 2024, 10:22 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.