The approach that has been standard for a few years now is to either write an application that can be hosted on the smartphone OR, if additional hardware is required, put it in a separate unit that links to the mobile phone via Bluetooth.
In this way new applications can piggyback off the reasonable chance that users will have a phone with Bluetooth that can connect you back to the Internet.
The downside is that the wearable product (various counters and meters for medical, sports, wellness) must rely on the ability of users to turn on and use the Bluetooth attributes of their phone....and it may require a separate piece of software on the phone to collate data and upload.
By the time you have split and complicated your product this way you can turn off a lot of consumers.
What this product may address is the desirabiity to have the wearable satellite equipment as power-efficient as possible so that charging it can be kept to a minimum or may even allow energy harvesting from movement.
I'm really curious to see what they put out. It seems like after years and years of wearable devices being the "next big thing", we might be seeing a drastic rise. Then again, our cell phones are filling the niche that many expected from wearables.
Looks the startup has all it takes to survive ,be focussed and become profitable. Hyderabad in india also has good soc designers and very cost effective manpower. But indians in top management of a startup has positive and not so positive effedcts when it comes to mergers,acquisitions and partnership models. But let's hope industry has something thoughtful and innovative in future. Good luck.