Continuing his investment spree which had somewhat slowed down of late, Ratan Tata, industrialist and angel investor, has today put in an undisclosed amount of sum in Goqii. Unsurprisingly enough, the size of the deal has not been publicly revealed.
Prior to this funding round, the company had managed to raise in the vicinity of $13.5 million in various stages. Its latest investment came from Edelweiss, which injected funds into the company at a valuation of around Rs. 300-400 crore ($44 Million-$55 Million).
In November 2015, Goqii raised about $13.4 million in Series A round, led by New Enterprise Associates (NEA) and China-based Cheetah Mobile. It has also raised capital from Vijay Shekhar Sharma of Paytm, Neeraj Arora of WhatsApp, Shree Ram Nene and Madhuri Dixit Nene.
Commenting on this investment from Mr. Tata, Vishal Gondal, CEO of the company, said,
With the recent developments and tie-ups on the platform, the investment from Tata is a testimony to us being a defining player of services in our category making long-term impact in people’s life. We feel honored and it further boosts our confidence to accelerate the pace of our growth. We will ensure that GOQii reaches new heights in the healthcare space in India.
Goqii was founded in the year 2014 by former Indiagames CEO Vishal Gondal. Currently, the company is one of the leading player in the Indian wearables market. It has launched a smart wearable fitness tracker that helps in tracking your steps, sleep, and other physical activity.
The Goqii app can be integrated with over 35 major fitness bands including the most popular brands such as Jawbone, Fitbit, Garmin, Moov, Misfit, and Sony. After integration, users can then decide on a goal and choose a personal coach to guide them on the application.
The company charges subscription plans for access to its coaches. Currently, it charges Rs. 3,999 for three months, Rs. 6,999 for a six-month subscription and Rs. 11,999 for an annual subscription.
Earlier, the company’s focus was on individual and end consumers. But, from this year, it has shifted its attentions towards the more lucrative enterprise customers and the wellness programes they run for their employees. Conglomerates such as Mahindra and Mahindra and Hindustan Unilever along with firms such as TSC, Wipro Target are already using GOQii services.
As per a report by research firm International Data Corporation (IDC), India’s wearable market reached 400,000 units in Q1 2016 with fitness bands dominating the market and accounting for a staggering 87.7% of the market share. Meanwhile, smart wearables such as smart watches contributed to around 12.3%. The report further suggested that GOQii led the market with a 16.1 percent share in the April-June quarter of this year.
The reports also emphasizes that the sub $50 segment (about Rs. 3,300) makes up for about 83 per cent of the total market share, and comprises of fitness bands prominently from Intex, GOQii and Mi — used by entry level consumers for first experience or gifting purposes.