Mumbai: US-based wearable and fitness technology company Goqii Inc. said on Thursday that it has raised $13.4 million in its Series A round of funding. The round was led by global venture capital firm New Enterprise Associates (NEA) with participation from DSG Consumer Partners, mobile utility applications developers Cheetah Mobile Inc. and Great Wall Club (GWC) and angel investors.

In 2014, Neeraj Arora, business development head at messaging service WhatsApp Inc. and Marco Argenti, vice-president, mobile, at Amazon Web Services Inc., made undisclosed personal investments in the company.

The company that was founded in 2014 by Vishal Gondal started out as a health wristband company. With time, it has created technology that allows users to log in to a common platform to access fitness services. It is looking to expand to global markets like China and increase its consumer base.

“This additional funding will focus on accelerating revenue growth, as well as in the long-term potential of our company. This funding also reflects the robustness of the sector. Our bands’ agnostic approach and virtual delivery model has received tremendous reception globally and we are now planning to replicate this success in key markets of China and US," said Gondal in a statement.

The company offers three subscription models that cost between 3,999 and 11,999 for the quarterly and yearly packages, respectively.

The International Data Corporation Worldwide predicts that wearable device shipments is expected to reach 173.4 million units, resulting in a five-year compounded annual growth rate of 22.9% by 2019.

“We believe that Goqii is redefining the wearables market globally and with its combination of technology, world’s leading experts, coaches and karma points on a single platform is uniquely positioned to lead in it," said Bala Deshpande, senior managing director, NEA.

Goqii is one of the few companies in the wearable space that has got a large round of funding from investors, perhaps because its target audience was outside India, right from the beginning.

Other Indian start-ups in this space include SenseGiz Technologies Pvt. Ltd that raised $500,000 this month and 2mpower Health Management Services Pvt. Ltd (GetActive) that raised an undisclosed amount from former Infosys Ltd director T.V. Mohandas Pai last year.

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