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HomeStart UpWearables firm Ultrahuman says revenue growing 20% on month 

Wearables firm Ultrahuman says revenue growing 20% on month 

Ultrahuman, a Bengaluru-based startup selling wearable devices and services to monitor metabolic health, aims to surpass a $50 million annual run rate (ARR) by March, according to its founder and CEO. 

The company is experiencing a robust 20% month-on-month revenue growth and maintains an ARR of approximately $31 million. Mohit Kumar, the CEO, emphasized the importance of achieving profitability before contemplating a potential initial public offering (IPO), given the current growth trajectory.

“At a scale of around $100 million in ARR, a slightly different and slower strategy may appeal to startups. But at the scale we are growing towards $50 million, it is important that we focus on profitability faster before exploring choices such as an IPO or non-conventional forms of capital raises,” Kumar said.

As per Kumar, Ultrahuman reported positive earnings before interest, tax, depreciation, and amortization (EBITDA) over the last three months. According to the CEO, the current monthly EBITDA margin stands at 6%.

Looking ahead to the ongoing fiscal year 2024, Kumar anticipates the company will generate $14.5 million in revenue with an estimated loss of $1.26 million before accounting for interest, tax, depreciation, and amortization.

In fiscal year 2023, Ultrahuman, backed by Nexus Venture Partners, reported an EBITDA loss of $6.76 million on revenue of $3.65 million.

The startup’s offerings encompass continuous glucose monitoring (CGM) devices and software, smart rings, and, more recently, blood testing services.

Ultrahuman introduced Blood Vision on December 15, an at-home blood-testing service that considers factors like age and genetic makeup to assess key preventive health indicators, including specific proteins linked to cardiovascular diseases.

The service is presently available in seven cities in India. Ultrahuman derives 25% of its revenue from India, 30% from the US, and 15% from the UK and UAE, while the remaining portion comes from other markets. Approximately 15% of its sales are business-to-business, and 20% are secured through offline distribution channels.

Ultrahuman’s CGM services see customers engaging roughly three times annually, contributing to an active paying user base of approximately 120,000.

In the FY23 revenue of Rs 19.83 crore, subscriptions and CGM services generated around Rs 16.19 crore, while smart ring sales accounted for Rs 3.34 crore.

In November, Oura Health, a Finnish wearables startup, initiated a lawsuit against Ultrahuman in the US, alleging patent and copyright infringements.

Ultrahuman has secured funding from notable investors like Alpha Wave Incubation, Steadview Capital, and Nexus. In its latest funding round last year, an extension of Series B, the company raised $5 million from investors, including former a16z general partner Balaji Srinivasan and AngelList founder Naval Ravikant, Kumar said.

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