Cult.fit Adds $10M, Eyes IPO

Cult.fit raised ~$10M in a round led by Valecha Investments.

What’s happening: The India-based fitness company (fka Cure.fit) secured the funds after tripling its income in 2023.

Staying focused amidst economic headwinds, the company laid off ~120 employees in January 2024 to streamline operations en route to “full profitability in FY25” and potential IPO.

Growth goals. Since reaching unicorn status following a ~$150M round in 2021 – it has been snapping up acquisitions, including Gold’s Gym’s India business in 2022 and Evolve Yoga last year. Eyeing expansion, it’s also building on its 130+ fitness centres through a franchise system.

Doubling down on holistic health, it clocked a 47% stake in glucose tracking startup Sugar.fit, bolstering its digital platform that includes DTC diagnostics and mental health tools.

Of note, in 2023, Cult.fit launched India’s first HRX Gym in a tie-up with the Hrithik Roshan-founded activewear brand, with clubs planned for major cities like Mumbai and Delhi.

For context: Since it was founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit notched ~$650M in outside funding while building a multi-faceted business model.

• Cult.fit’s are full-service gyms with trainers and group classes, such as boxing, strength and dance.
• Digital weight loss solution cult Transform supports users through lifestyle changes, while hybrid programme Bootcamp taps one-on-one  coaching.
• Matchmaking platform cultpass PLAY connects users with coaches and players for sports like badminton and swimming, while cult.sport outfits the gear and apparel.

Looking ahead: Layering investments, acquisitions, franchise expansion and in-house products, Cult.fit is pulling out all the stops to reach its long-held IPO goal. Hit hard during the pandemic, it will be hoping the cuts and capital suffice to float at the finish line.