Wearables firm Ultrahuman says revenue growing 20% on month

Ultrahuman, which sells wearable devices and services that help users track metabolic health, is witnessing 20% month-on-month growth in revenue and is targeting to cross $50 million in annual run rate (ARR) by March, its founder and chief executive said.

The Bengaluru-based startup is currently clocking an ARR — annualised revenue based on current monthly revenue — of about $31 million, Mohit Kumar told ET. He said at the current rate of growth, it must first focus on turning a profit before considering a public sale of shares.

“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.

Ultrahuman, Kumar said, posted earnings before interest, tax, depreciation and amortisation in the past three months. Its monthly Ebitda margin is 6% currently, the CEO said.

For the ongoing fiscal 2024, Kumar projected the company post $14.5 million in revenue, with a loss of $1.26 million before interest, tax, depreciation and amortisation.

The Nexus Venture Partners-backed startup had posted an Ebitda loss of $6.76 million on revenue of $3.65 million in fiscal 2023.

Ultrahuman’s products and services include continuous glucose monitoring (CGM) devices and software, smart rings and lately, blood testing.On December 15, Ultrahuman launched Blood Vision, an at-home blood-testing service that the company claims takes into account age and a population’s genetic makeup among other factors to understand leading preventive health indicators, such as specific types of protein responsible for cardiovascular diseases. The service is currently live in seven cities in India.

Ultrahuman makes 25% of its revenue from India, 30% from the US and 15% from the UK and UAE, with the rest coming from other markets. About 15% of its sales are business to business and 20% are closed through offline distribution channels.

With customers using its CGM services about three times a year, Kumar said the company has an active paying user base of about 120,000.

In its revenue from operations of Rs 19.83 crore in FY23, about Rs 16.19 crore was from subscriptions and CGM services, while Rs 3.34 crore was from the sale of smart rings.

In November, Finnish wearables startup Oura Health sued Ultrahuman in the US, accusing it of patent and copyright violations.

The startup has so far raised capital from the likes of Alpha Wave Incubation, Steadview Capital and Nexus. The company closed its latest round of funding last year, an extension of Series B, at $5 million from investors such as former a16z general partner Balaji Srinivasan and AngelList founder Naval Ravikant, Kumar told ET.

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