The Weightmonitor app provides calorie counts along with paid nutritionist advice. Chris Whiteoak for The National
The Weightmonitor app provides calorie counts along with paid nutritionist advice. Chris Whiteoak for The National

Calorie tracking app aims to whet investors’ appetites



Dev Khosla is a healthy weight now, but back in college he was obese.
For a while, he had no interest in losing weight. But when he saw his new friends get into fitness, he decided to try. 
"I told my mum, who is a well established nutritionist, that I wanted to start losing weight and we started a phone and Skype diet plan, which worked really well for me," says Mr Khosla, from New Delhi in India. 
"So I thought I could create a programme, professionalise it and customise it and offer it at compelling prices, I am sure we could benefit other people."
And he did. He developed Weightmonitor, an app which offers nutritional advice and helps you track calories. The app was a success in India, and soon people were also signing up in the UAE. 
"As you already know, there are a lot of Indians in the UAE so we were seeing a lot of organic demand from one friend to the other friend, like a friend reference," he says. "People are losing weight. People have been using the scoring programme which we launched, which is basically the main selling point of the programme. What it does is once you have a target to reach every day it keeps you motivated to achieve a higher score, independent of your food habits. That has been a great validator for us." 
Mr Khosla moved to the UAE just over a year ago to launch Weightmonitor UAE, which has two elements – a free calorie-counting service and paid nutritionist advice. For Dh499 per quarter, users receive access to a personal nutritionist who puts together a personalised diet plan.
However, when the app was launched in Dubai based on the same paid for model as in India, the company did not see a lot of success initially. 
"We had to change it to a model where people come in and feel the product, see the product, without having to pay for it immediately. You can lose weight by using the free [calorie-counting] service and go on to use it for the rest of your life or pay for the premium element [which also gives you access to a nutritionist]." 
The app now has 1,500 users and Mr Khosla is on the verge of raising a Series A round of funding. 
"We have been able to demonstrate a proof of concept to a suitable investor," says Mr Khosla. "We have already been talking to a few venture capital funds, so we are in the process of engagement on that side."
They may not need much persuasion. 
"Anything that has a proof of concept, anything that is scalable and anything which has a barrier to entry is something that excites a VC," he says. 
VentureSouq, an angel investing platform, says there has been increased interest from investors in health and fitness tech start-ups as the size of financings and valuations in both the Middle East and the US have increased significantly over the last five or six years. 
"This is not surprising given that people generally are starting to take better care of themselves through healthier eating and exercise, and technology is starting to increasingly intersect into people's lives including health and wellness," says Suneel Gokhale, a partner at VentureSouq.
The global mobile health, or mHealth market, which includes the fitness tracking sector, is expected to reach US$102.43 billion by 2022, according to Zion Market Research.  
"Weightmonitor UAE is a very good example of this fast developing start-up space and is an ideal fit for the emerging UAE entrepreneurial ecosystem," says Ramesh Jagannathan, the managing director of the innovation and entrepreneurship platform StartAD.

VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

The Lost Letters of William Woolf
Helen Cullen, Graydon House 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”