Secret Helfie AI investor documents reveals huge revenue and profit claims

The group, which claims to be Australia’s latest billion dollar tech unicorn, has told potential investors it would be among the country’s most profitable private companies in two years.

Helie AI claims it has an addressable market of 3.5 billion people worldwide who would use its AI technology to check their health.

Helfie AI, which claims to be Australia’s latest billion dollar tech unicorn but may be worth less than $50m, told potential investors it would be among the country’s most profitable private companies in two years with gross profit margins between 60 to 90 per cent.

A 79-page information memorandum circulated by Helfie AI earlier this year, and obtained by The Australian, claimed the health tech start-up had an addressable market of 3.5 billion people around the world and that it could charge up to $15 for customers to use a phone app or chatbot to undertake health tests using its artificial intelligence.

Income from a projected 101m users globally would generate $620m revenue by 2026 – enough for Helfie AI to be among the top 150 private companies in Australia – and a $340m net operating margin, financial projections in the informational memorandum said.

Helfie AI also claimed to already have more than 70 corporate clients on its books, have deals with government entities in five countries (Denmark, Poland, Ukraine, South Africa and Tanzania) and be “deploying its capabilities” with non-government organisations in 20 African markets.

The company says its AI technology is capable of testing for health issues ranging from Covid-19 to sexually transmitted infections, stress, skin cancer and tuberculosis via a phone camera scan and chatbots.

Forecasts from a 79-page information memorandum circulated by Helfie AI earlier this year.

Last week, Helfie AI surfaced in financial press reports claiming it quietly reached a $US750m ($1.1bn) valuation last year, after raising $US33m from investors in what was one of the biggest AI-related capital raises in the country.

Helfie AI, which counts former Moderna chief scientific officer Tony De Fougerolles as a director, was also reported to be about to launch discussions with local and international investors to try to raise between $US100m to $US300m at a $US1bn valuation – one-third more than its current reported and claimed $US750m value.

Yet an analysis of corporate filings by Helfie AI in Australia by The Australian showed it had paid-up capital of about $9.5m, the last injection of funds in December gave it paper valuation of about $47m and that there is no record of the mooted $US33m capital raising on any Australian corporate paperwork.

Helfie AI’s public relations representatives did not answer a series of detailed questions about the company’s valuation, or subsequent questions this week about claims in the information memorandum.

Financial forecasts in the document claim Helfie AI’s revenue would reach $55m for the period between September last year and December 2024, rising to $198m in 2025 and then hitting $620m the following year. The net operating margin from that revenue would rise from $29m to $108m and then $340m over the same period.

A section about Helfie AI “products, pricing and unit economics” modelling claimed a 64 per cent profit margin could be achieved on the checking of respiratory conditions by its AI via its app, including Covid, Tuberculosis, bronchitis, pneumonia and asthma. A patient could be charged $2.50 (some would be subsidised by government) for four checks, representing revenue of 63c per check.

Helfie said its unit cost per check was 23c, leaving 40c in profit margin.

The gap between Helfie AI’s claims and what ASIC documents show.

Its model said a $6 charge for a STI check (the full price was $15, but the modelling was discounted to $6) done via chatbot would also have a 40c unit cost, leaving $5.60 in profit, or a margin of 93.33 per cent.

Helfie AI said its entire AI stack would be built on the blockchain and also be configurable as a non-fungible token.

“Helfie’s blockchain ecosystem already features governments, healthcare providers, corporations and NGOs building next generation healthcare products and services,” the information memorandum said.

The information memorandum also claims a 95 per cent accuracy for Helfie AI’s tuberculosis and Covid checks, 91-95 per cent for pneumonia, bronchitis and asthma, 95 per cent for a lung health check, 80 per cent for a stress test using facial scanning technology, 90 per cent for skin cancer and 95 per cent for STIs. But the documents had no details about any clinical trials to back up the accuracy claims.

Customers who received notification they may have a condition would be referred to telemedicine services or doctor bookings and specialists, which would also provide a revenue opportunity for Helfie, the information memorandum did say.

Helfie was co-founded in 2019 by chief executive George Tomeski, who founded PlayUp about a decade ago and raised $100m from investors including former Prime Minister Malcolm Turnbull, billionaire Bruce Mathieson and a group of sports stars for what was going to be a huge online social gaming company.

With Tomeski at its helm, PlayUp told investors in 2012 that revenue was forecast to reach almost $350 million in the 2014 financial year and $1.34 billion the year after. Earnings before interest and tax, depreciation and amortisation (EBITDA) was forecast at $318 million in 2013-14 and $1.26 billion a year later.

PlayUp instead burned through the $100m it raised from investors and the company collapsed owing staff almost $4m in entitlements, before the brand was sold to new management who now operate it as a gambling firm.

Originally published as Secret Helfie AI investor documents reveals huge revenue and profit claims