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Reverse Type 2 Diabetes | Habitual Health

October 5, 2021
Reverse Type 2 Diabetes | Habitual Health

Habitual Secures Seed Funding to Combat Type 2 Diabetes

A London-based health tech company, Habitual, has successfully completed a $2.3 million seed funding round. The startup focuses on a weight management program designed for individuals diagnosed with type 2 diabetes, or those at risk of developing the condition (prediabetes). This program integrates evidence-based food replacement strategies with comprehensive digital support, aiming to help patients manage—and potentially reverse—their condition and reduce reliance on medication.

Investment Details and Background

Berlin-based Atlantic Food Labs spearheaded the investment round, with participation from existing investors Seedcamp and MMC. Oxford Seed Fund, linked to the University of Oxford’s Entrepreneurship Centre, also contributed. This latest funding represents Habitual’s third investment since its inception in September 2019, following a pre-seed round earlier this year to facilitate a limited launch. To date, the company has raised over $3 million in total.

Program Components and Methodology

Habitual’s program centers around a period of complete food replacement. Users receive all their daily meals in pre-portioned, nutritionally balanced formats, with options including flavored porridges, shakes, and soups.

The company collaborated with a product development consultancy—experienced in formulating products for brands like Huel—to create the food replacement options.

Digital Support and Patient Guidance

A dedicated digital program complements the food replacement component. It provides ongoing support during dietary changes, guiding patients through the gradual reintroduction of wholesome, unprocessed foods.

The accompanying app offers tools for tracking weight and mood, alongside access to educational resources and virtual coaching.

Scientific Basis and Digital Intervention

“We utilize the same nutritional principles as the DiRECT trial and other total diet replacement studies—specifically, three months of total diet replacement followed by a phased reintroduction of whole foods,” explains Napala Pratini, co-founder and COO.

“However, our primary distinction lies in delivering the program entirely digitally, eliminating the need for in-person or telemedicine appointments.”

Habitual’s digital intervention comprises three core elements: evidence-based daily behavior change lessons and exercises—covering areas like CBT and nutritional education—to support the reintroduction of whole foods; personalized daily tracking via self-reporting to monitor progress; and access to the startup’s patient care team and virtual peer support groups.

Addressing a Growing Health Crisis

Obesity and poor dietary habits represent a significant and escalating global health challenge. These issues are often linked to the prevalence of highly processed, sugar-rich foods common in Western diets, and increasingly found in developing nations.

Over the past decade, numerous digital health startups have emerged on both sides of the Atlantic, aiming to leverage technology to address this problem. Examples include Livongo, Liva Healthcare, Omada, Oviva, Second Nature, and Virta.

Market Opportunity and Competitive Landscape

Alongside general weight loss platforms like Noom, increasingly specialized solutions are appearing, such as Fella, which focuses on obesity support for men.

The potential for digital support in diet and health is substantial, with diverse approaches likely to resonate with different individuals and health conditions. A single dominant player is therefore unlikely to emerge.

The projected cost of diabetes-related healthcare is estimated to exceed $1 trillion annually by 2025. Capturing even a small portion of this market represents a significant business opportunity.

Future Vision and Expansion Plans

“We are addressing the fundamental causes of the most pressing issues facing modern healthcare systems, and while U.S. companies have achieved substantial funding and valuations, there is considerable scope for improvement in patient care,” argues Pratini.

Habitual has “global ambitions” and intends to challenge U.S. market leaders with a more empathetic, patient-centered approach to diabetes care.

Early Results and Clinical Trials

During a private beta program involving 30 patients, users experienced an average weight loss of 17 kg over three months. This level of weight loss, according to Pratini, aligns with the amount shown to be “necessary” for reversing type 2 diabetes in a majority of individuals.

“Individual patients may require shorter or longer periods of total food replacement to achieve their goals, and we provide support for personalized approaches,” she clarifies.

Pratini and her co-founder, CEO Ian Braithwaite—a medical doctor with experience in digital health and clinical practice—collaborated with the DiRECT team, giving them a strong understanding of the underlying research.

Habitual plans to conduct its own peer-reviewed clinical trials within the next year.

Commercial Model and Future Partnerships

Currently, Habitual offers a direct-to-consumer program, with individuals self-referring and paying a fee of £39/week or £139/month for six months. This includes all food for the initial three months and a portion of food for the subsequent three months.

The company aims to collaborate with healthcare payers, such as the U.K.’s National Health Service, as well as self-insured employers and insurance companies—a common model in the U.S.

“We adopted a direct-to-consumer approach to accelerate evidence building and scaling, rather than relying on NHS procurement processes,” explains Pratini.

“The NHS is already piloting similar programs, but these reach only a small fraction of the U.K.’s type 2 diabetic population. We anticipate broader rollout in the coming years, at which point we will have substantial evidence to support our bids for NHS tenders.”

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