As disheartening as this may sound, Fitbit’s rival Jawbone is reportedly bidding its wearable business goodbye in a move that would transform it into a health-centric tech company. The San Francisco-headquartered fitness tracker company is even asking for funds to help it transition smoothly.

Just this Saturday, TechCrunch broke the news that Jawbone is abandoning its hardware-making business amid reports of financial troubles and poor reviews for its products. The company that started out as a producer of headsets and speakers is switching into another venture that would entail no direct interaction with consumers. Jawbone is said to be eyeing a complete transformation into a healthcare-focused firm that would provide health products and services directly to clinicians and health providers only.

Despite not admitting or revealing details about this venture, Jawbone has already made communications with its current backers to raise sufficient money that would fund its transition. It is also seeking new strategic investors from the medical sector both within and outside the country. So far, the company has managed to raise $951 million from investors like JP Morgan, Andreessen Horowitz, Kleiner Perkins and Sequoia, among others.

“There are a lot of things to learn about the interactions between health wellness and consumer electronics,” a source “Every wearable company today will be posed with this question: Do I want to play in consumer and narrow margins, or healthcare and service and make incredible margins but with possibly a lot of upfront fixed cost.”

According to Engadget, the Jawbone UP24 maker’s decision is primarily due to the fact that the consumer hardware competition has become too challenging for many save for big names in the technology industry. Jawbone has also learned about its weak financials compared to existing companies, which all the more pushed it to look for a venture that is more favorable for its growth.

The move shouldn’t come as a surprise knowing that Jawbone has not released a new UP variant in the recent years. Its fitness trackers also did not receive massive success. In May 2016, AppleInsider learned that the company was selling its remaining inventory to a third-party distributor amid reports that it put its Jambox speaker business up for sale. At the time, there were sources claiming that Jawbone was working on a final effort to keep its name relevant in the wearable industry.

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