BENGALURU, India — Indian fitness and healthcare startup CureFit has announced plans to acquire Fitness First India, as it plots expansion into the Mumbai Market.
The deal, the terms of which have yet to be disclosed, will see owner of Fitness First India, Oaktree Capital, become a minority shareholder in CureFit, which owns Cult fitness centres, F&B brand EatFit and a number of health clinics under the CareFit brand.
According to CureFit, it intends to retain the Fitness First brand and will open an additional 10 fitness clubs, bringing the total number of Fitness First outposts in India to 50.
Speaking about the acquisition, CureFit Co-Founder Ankit Nagori said: “Fitness First has some of the most loyal customers in the fitness space. These are people who are really passionate about fitness and have a lot of spending power, so the potential to sell our other products to them is very high. Fitness First will also help us get a foothold in Mumbai and expand presence in NCR.”
It is predicted the acquisition will bring roughly 10,000 new customers to CureFit’s existing platform, to which the firm will market its food subscription services and other products, in a bid to boost revenues.
CureFit, founded in 2016, currently operates in Bengaluru and Delhi. An early-stage startup, it has completed a number of successful funding rounds, the most recent –– a Series B round, secured the company $25 million from existing investors including Accel Partners, IDG Ventures, Kalaari Capital and UC-RNT Fund. To date, the company has raised $55 million in equity.
The latest in a line of acquisitions for CureFit, including boutique fitness brands Cult and The Tribe, yoga chain a1000yoga as well as Bengaluru-based kitchen Kristys Kitchen, Fitness First India will become a wholly-owned subsidiary of Cult.Fit once the transaction is completed. Oaktree will invest additional capital into the consolidated business, according to an official statement.
According to a recent Deloitte India report, the fitness industry in India is currently worth over $1 billion.
The wellness industry is also growing at a rapid pace, driven by an emerging middle class with rising disposable income and an increased awareness surrounding the benefits of leading a healthy lifestyle. In addition, strong support by the Government, which has recognised “Wellness” as one of its priority sectors, has further bolstered the market.
With the premium and mid-end of the fitness market predicted to enjoy further growth, especially within India’s main cities, with Fitness First under its belt CureFit is in a strong position to leverage this growth and “bring better fitness and health services to more Indians,” argued Federico Alvarez-Demalde, Senior Vice President at Oaktree.