Pristyn, founded as a startup dealing in minimally invasive surgeries, is in talks to secure $7-10 million for Beatxp, its fitness-tech business that sells massage guns and weighing scales. Negotiations are on with several investors including existing backer Peak XV Partners, according to two people in the know.
The specifics of the deal are being worked out and a term sheet is expected to be signed in two weeks, one of them said.
“The deal has been in the works for some time now and is likely to be finalized in two weeks. The funding will be reflected in the books of Beatxp,” this person said. “If it goes through, the funding will help Beatxp extend its runway and scale to reasonable levels till such time a larger round comes in.”
“Pristyn Care’s growth depends on Beatxp,” said an investor on condition of anonymity. “After scaling down smartwatches, (Beatxp’s) sales have stagnated, which makes this funding round crucial,”
A spokesperson for Peak XV Partners declined to comment. Harsimarbir Singh, Pristyn Care’s co-founder and chief executive, did not comment on the fundraising plans.
The deal being negotiated is much smaller than what the Gurugram-based healthtech startup had initially set out to raise. In February last year, Mint reported that the firm was looking to raise $50-75 million at a valuation of about $400 million for Beatxp. In December, Mint reported that Pristyn Care was looking to raise as much as $100 million.
Beatxp’s potential valuation in the latest fundraising discussions weren’t disclosed.
More senior exits
Pristyn Care is also dealing with a spate of senior-level exits, with Shaloo Varma, senior vice president of medical directorate, being the latest to depart. Varma has resigned and is currently serving notice, said the two people mentioned above, speaking on condition of anonymity.
Varma, who served in the role for about 4.5 years, according to her LinkedIn profile, did not respond to Mint’s queries. “We don’t comment on conjecture about our team,” Singh said. “Most senior leadership has been here for 4+ years, and this is for a 5-year-old company, and we are very proud of it.”
In February, Mint reported that a host of senior executives had resigned from Pristyn Care, presenting a fresh challenge to the startup that has been scrambling to raise funds. Among those executives were senior vice president of finance Prabhat Agarwal, senior vice president of business and operations Tarun Bansal, senior vice president of human resources Srinivas P. Reddy, and marketing head Gagan Arora.
Founded in 2018 by Singh, Vaibhav Kapoor, and Garima Sawhney, Pristyn Care core business involves operating a network of hospitals and clinics through partners. In 2021, Pristyn gained its unicorn tag when it raised $100 million in Series E funding from Tiger Global Management, Hummingbird Ventures, and others at a post-money valuation of $1.4 billion.
Beatxp’s challenges
Beatxp also has been undergoing a slew of changes, with the fitness-tech brand pulling the plug on its smartwatches after failing to see consistent demand.
“We have taken a differential approach to smartwatches,” Mint quoted Singh in its February report. “We have slowed that business down because even though we were the youngest and fastest in the market to grow in smartwatches, we believe there is less scope for innovation, IP and design in that market.”
Beatxp is also banking on two new categories—sportswear and shoes—for growth, which will be meant for premium audiences, Singh had added.
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Beatxp, registered under the name GHV Medical Anchor Pvt. Ltd, saw its revenue jump to ₹254 crore in 2023-24, from ₹108 crore in the previous year, selling products such as massagers, weighing scales, and gym accessories. However, its losses widened to ₹173 crore from ₹37 crore, showed financial statements accessed from Tofler.
Pristyn Care, registered under the name GHV Advanced Care Pvt. Ltd, reported an operating revenue of ₹600 crore in FY24, up from ₹452 crore in the previous year, according to filings with the ministry of corporate affairs accessed by business analytics platform Tofler.
According to Singh, Pristyn Care had reduced its cash burn by 65%.
GHV Advanced Care’s cash balances stood at ₹12.8 crore in FY24, while its bank balance and other equivalents were at ₹9.4 crore. While trade receivables were at ₹105 crore, the company’s financial assets had dropped to ₹341 crore from ₹570 crore in the year before.
Beatxp’s (GHV Medical Anchor) cash and cash equivalents were at ₹55 lakh in FY24, and its total financial assets at ₹63.9 crore, per data accessed by Tofler.
