Foodstand, an app that helps you eat healthier through “Good Eating Challenges,” has been acquired by a digital health company called Diet ID. These eating behaviors include community challenges with friends and co-workers. The details about the deal — which was closed in March — were undisclosed.
The Foodstand app highlights goals like eating less processed foods and eat more fruits and vegetables. Foodstand has a consumer app, but the platform is also sold to enterprises for their wellness programs. And Diet ID’s digital tool tracks diet and nutrient intake. Going forward, the combined solutions will be pitched health systems, clinics, and insurance providers.
Interestingly, Diet ID and Foodstand are both moving their headquarters to Detroit, according to Crain’s. Diet ID used to be headquartered in Texas and Foodstand is formerly based in Ann Arbor, Michigan. Foodstand is currently participating in the Backstage Capital startup accelerator program — which was set up in the Bamboo Detroit co-working space. Foodstand co-founder Rachna Govani told Crain’s that the plan is to continue participating in the accelerator program.
“We launched Foodstand to help each of you make healthy eating the easier choice. Tens of thousands of you in over 85 countries have proven that it is possible – small shifts each day can lead to massive changes — weight loss, improvement in A1C levels, more energy, and overall healthfulness, and we are SO inspired by each of you. The magic of building new habits lies between the relationships that support us,” wrote Govani in a blog post.
Originally, Foodstand started in New York about four years ago. And then it moved to Ann Arbor, Michigan to join the Desai Accelerator accelerator program in 2017. And the Backstage accelerator program will be running from March 12 until June 7.
Govani is now the head of product for Diet ID. Udi Falkson — who is also a co-founder of Foodstand — is now the chief technical officer at Diet ID. And Foodstand contractor Vijay Pai is going to serve as Diet ID’s director of operations.
Diet ID is also going to hire four or five more people in Detroit within the next couple of years. And Diet ID’s other seven employees are located in various places around the world. And Diet ID’s founder and CEO — David L. Katz — will continue to serve as the head of the Diet ID.
According to Crain’s, Diet ID recorded revenue of over $100,000 in the first quarter and will hit about the same or more for the rest of the year. And Katz told Crain’s that Diet ID was valued at $6 million prior to the acquisition.
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