Edelweiss to invest in fitness firm GOQii.
Mumbai | By Surabhi Agarwal, ET Bureau | 10 Feb, 2016, 05.22 AM IST.
Vishal Gondal-founded fitness firm GOQii has received its first major investment from a corporate house. Theventure capital arm of the Mumbai-headquartered financial services firm Edelweiss has closed an investment round in GOQii, which sells fitness bands as well as healthrelated services around it. The investment has come at a valuation of Rs 300-400 crore.
GOQii was founded by Gondal, who also founded Indiagames and later sold it to Disney. Though the investment was made by the VC arm of Edelweiss, GOQii is also looking at capitalising on the health insurance customer base of Edelweiss along with the clientele of the other arms of the private banking firm.
Speaking to ET, Gondal confirmed the investment and said that it is not just a pure-playfunding round and Edelweiss has come on board as a “strategic partner”. “The funding will be used to scale up the company’s operations in new markets such as US and China, expand into different business segments and develop new technologies,” said Gondal.
The investment which is likely to be closed this week, comes after a Series-A round of funding totalling $13.4 million which the company closed in November, last year. The round was led by New Enterprise Associates (NEA) along with a clutch of other investors
including Chinese internet firm Cheetah Mobile. Pranav Parikh, the head Edelweiss’ growth and VC fund also confirmed the investment. Neither Gondal nor Parikh disclosed the quantum of investment but Edelweiss will get a minority stake in GOQii.
Parikh who has come on board recently to head the fund that was formed around six months ago said that the fund is interested in backing sustainable product as well as services firms. “GOQii provides lifestyle coaching, which is not tied to any particular band and offers virtual delivery of health services,” said Parikh adding that apart from it being a VC
investment, Edelweiss sees strategic value that can be brought to GOQii through its ecosystem. “The health industry is undergoing tremendous change and technology can drive huge efficiencies is areas such as diagnostics that can aid in better delivery of products such as health insurance,” added Parikh.
After focussing on the end customers, starting this year, GOQii is sharpening its focus towards enterprise customers and the wellness programmes 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 to improve the wellness of their workforce.