CultFit IPO Unveiled: From Business Model to Valuation

Summary

Cult.fit, founded in 2015 by Mukesh Bansal and Ankit Nagori, has emerged as a prominent health and fitness platform. Offering diverse fitness modules both offline and online, including strength training, yoga, and dance fitness, Cult.fit has garnered industry recognition. With strategic funding rounds and a commitment to personalized wellness solutions, the company reflects the evolving trends in the health and fitness sector. Cult.fit's success underscores its position as a key player in the dynamic landscape of proactive well-being.

Overview

In India, fitness operates in a very distinct manner compared to other countries, mainly due to significant differences in people's diets. When it comes to fitness, it is unique in India. Notably, the concept of fitness in the country is influenced by the vastly different dietary habits. Speaking of fitness, the name Cult Fit cannot go unnoticed. Cult Fit is a gym chain and online fitness training platform that has been rapidly growing since its inception in 2015. The initiative began with Mukesh Bansal, a former employee of Flipkart and the founder of Myntra, who is also the co-founder and CEO of Cult Fit. Alongside him, another Flipkart alumnus, Ankit Nagori, joined forces, and together they initiated Cult.Fit. Initially, the brand was known as CureFit, later rebranded as Cult Fit.

Let's say your schedule prevents you from going to the gym, or you just want a health plan that can aid you according to your body type and health needs. Indeed, you may enjoy this from the comforts of your home as well. One such offline and online platform that provides preventative healthcare methods is Cult.fit.

As individuals become more aware of their health, the fitness and health sector is also expanding. To publicize their fitness journey, a lot of fitness experts use internet marketing to promote their fitness objectives. This has led to the emergence of several fitness and health businesses that promote healthy living.

Within the realm of health and fitness, Cult.fit operates in an industry that holds substantial global significance, boasting a staggering market size exceeding $87 billion. Notably, India has witnessed a surge in health app downloads, securing the top position with a remarkable 157% increase, reflecting a growing health consciousness among its population. The profound impact of the COVID-19 pandemic has heightened awareness about health, prompting individuals to adopt a more comprehensive approach. Forecasts anticipate a robust Compound Annual Growth Rate (CAGR) of 17.6% for this industry from 2022 to 2030.

Established in 2016 by two visionary entrepreneurs, Cult.fit has rapidly gained popularity among fitness enthusiasts. Mukesh and Ankit embarked on this journey at a time when there were no significant players in the health and fitness industry. After departing from Flipkart, both being fitness enthusiasts themselves, they observed a lack of proactive health initiatives. Recognizing that people tended to prioritize their health only during emergencies, the duo identified a critical gap.

In India, where chronic diseases rank among the leading causes of death, Mukesh and Ankit were motivated to introduce a holistic approach to health. Their mission was to create a platform that not only encouraged fitness but also provided comprehensive training opportunities. Leveraging their engineering background, they devised a solution that tailors training programs to individuals based on factors such as Body Mass Index (BMI), required daily sleep, optimal water intake, and overall daily activity levels.

Business Model 

Cultfit follows a business model called Franchisee-Owned, Franchisee-Operated (FOFO) model, As a health-tech startup, Cure.Fit has navigated a distinctive and captivating journey, particularly in terms of funding and company expansion, a narrative we'll delve into later in this article in comparison to other health-tech startups in the country.

The company's funding trajectory has been robust, commencing with significant investments from major players like Axis and HDFC, further enriched by contributions from Flipkart, Myntra, and the latest infusion of approximately $75 million from Tata Digital. In total, Cure.Fit has garnered an impressive sum exceeding $479.6 million across approximately 10 funding rounds. In addition to financial backing, the brand has strategically acquired several companies such as Tribe Fitness, a1000Yoga, Kristy’s Kitchen, and most recently, TREAD, facilitating its expansive footprint.

Fueling its growth is an innovative marketing strategy featuring unique campaigns and promotional initiatives, enabling Cure.Fit to operate seamlessly with a network of over 180 fitness centres nationwide.

As a pioneering health-tech startup, Cure.Fit has embarked on a captivating and distinctive journey, marked by noteworthy milestones in both funding and company expansion. This trajectory, which we will explore later in this article, sets Cure. Fit apart from other health-tech startups in the country. The company's funding history is deeply entrenched, commencing with substantial rounds from major players such as Axis and HDFC. This financial foundation was further strengthened with support from industry giants like Flipkart, Myntra, and the latest funding round, securing approximately $75 million from Tata Digital. In total, Cure.Fit has amassed an impressive sum exceeding $479.6 million through approximately 10 funding rounds. Additionally, the strategic acquisition of companies like Tribe Fitness, a1000Yoga, and Kristy’s Kitchen has played a pivotal role in augmenting the brand's expansion, with the latest addition being TREAD.

Fueling its growth engine is an innovative marketing plan featuring unique campaigns and promotional ventures. Currently, Cure.Fit operates seamlessly with a widespread network, boasting more than 180 fitness centres across the country.

Segments of Cultfit

Strength and conditioning: Strength and conditioning activities are designed to improve strength, endurance, power, agility, and other abilities. These workouts provide a thorough training programme by utilising a variety of equipment such as dumbbells, kettlebells, and resistance bands.

Yoga: Yoga is a set of postures, movements, and practices designed to improve flexibility, balance, posture, and breathing. It promotes both physical and mental well-being.

Dance Fitness: A variety of dance forms, including Bollywood, Zumba, and Bhangra, are used to improve cardio, coordination, and rhythm. These workouts provide an exciting and lively way to remain active.

Boxing: Boxing exercises aim to improve speed, reflexes, and stamina using a variety of abilities and drills such as punches, jabs, hooks, and other boxing techniques.

HRX: Curated by Hrithik Roshan, a well-known actor and fitness star, HRX workouts include exercises that are purposefully tailored to target different body areas and muscles. These routines take a comprehensive approach to fitness, drawing on Hrithik Roshan's experience.

Benefits of Cultfit: 

Personalisation: The platform provides a personalised experience, allowing users to choose routines that are appropriate for their fitness level and goals. The app or website's progress and performance tracking capabilities help to strengthen the individualised approach.

pleasurable Experience: Music integration, interactive games, challenges, and other elements make workouts more pleasurable. The ability to engage with other users or coaches via the app or website adds a social and engaging component to the fitness experience.

Effectiveness: Workouts have a favourable influence on both physical and mental health. Users may see the actual benefits on their bodies and minds, which are supplemented by helpful recommendations and comments from coaches to help them improve their fitness

Apart from this main business outfit offers 3 more products

Eat.fit

This solution transforms healthy eating by offering a varied choice of meal delivery alternatives that appeal to a variety of dietary requirements and interests. Whether you're looking for an energy-packed breakfast with options like oats, idli, or paratha, a balanced lunch or supper with rice, roti, dal, and curry, or savoury snacks like chaat or momo, this service guarantees a delightful and nutritious dining experience.

Indulge in a wide range of flavours and varieties with snack alternatives such as samosas or cake, satisfying your appetites while staying on track with your health goals. Furthermore, the product goes beyond meals to provide refreshing and hydrating beverage options such as juice, smoothies, tea, and coffee, which improves your total eating experience.

This simple meal delivery service, available via the Cultfit app or website, provides a broad menu to your doorstep, allowing you to enjoy these healthful selections in the comfort of your own home. Alternatively, for those who want a more communal meal experience, these wonderful foods may be eaten at the offline centres' cafeteria, giving you more options on your gastronomic adventure.

Mind.fit

A product that promotes mental health through a variety of sessions tailored to certain requirements and emotions. Explore a variety of sessions designed to give a comprehensive approach to mental wellness:

Begin meditation sessions to help you relax and quiet your mind, using techniques such as breathing exercises, visualisation, mantras, and more. Yoga Nidra sessions, which incorporate relaxation phases such as awareness, intention, and rotation, can help you fall asleep and rejuvenate your body.

Care.fit

A complete healthcare services offering that addresses a wide range of ailments and issues. Customise your health care experience by selecting from a variety of specialised services:

Engage in Doctor Consultation services, which provide a platform for you to consult with healthcare specialists from a variety of disciplines such as general medicine, gynaecology, paediatrics, dermatology, and more. Obtain reliable health diagnostics from services that provide a wide range of tests and scans, including blood tests, urine tests, x-rays, and ultrasounds.

Access a simple Pharmacy service to receive prescription medications and supplements for your health care, with a varied assortment of antibiotics, vitamins, probiotics, and more. Prioritise your well-being with Health Checkup services, which provide comprehensive packages such as basic, advanced, premium, and more, to ensure a full examination of your health state.

Industry research 

The gym and health club market is the largest part of the vast fitness industry, with a significant impact on the whole landscape.

The gym and fitness club sector is expected to be worth $88.5 billion by 2024. This enormous cash amount demonstrates the industry's important contribution to the overall fitness sector.

Notably, the gym business is now expanding at a significant yearly pace of around 7.5%. Despite this improving trend, it has failed to fully recover to its pre-2019 peak, showing that recent global events are still having an impact.

Looking ahead, the industry shows evidence of resilience and resurgence, having recovered greatly from recent problems. While the next several years may bring some obstacles, positive macroeconomic signs are pointing to a long-term growth trajectory. This view sees the gym and health club business as a dynamic and evolving segment within the larger fitness environment.

The worldwide fitness business contracted, with the number of health clubs dropping to around 200,000 owing to Covid-related closures. Currently, the industry serves around 184 million members. It's vital to remember that this data only applies to health clubs and excludes boutique studios, community recreation centres, and gyms in other locations such as hotels. Furthermore, these statistics does not reflect the full fitness sector, which is rapidly expanding. The larger workout business comprises different components such as equipment, software, apparel, and wearables, adding to its dynamic and increasing character. The numbers supplied offer a look into the specific segment of health clubs, emphasising the necessity for a more complete picture when examining the overall growth and trends within the fitness sector.

“For Millennials, wellness is a daily, active pursuit. They’re exercising more, eating smarter, and smoking less than previous generations… And this is one space where they’re willing to spend money on compelling brands.”

– Goldman Sachs –

Millennials have a strong liking for fitness applications, outpacing other age groups in usage, and women use these apps twice as often as males. A large 46% of millennials indicate a desire for as much quantifiable health data as possible, and a significant 54% want to acquire body-analyzing gadgets, indicating a strong interest in health monitoring and fitness technology adoption among this group.

Meanwhile, the fitness sector is transforming as Generation Z emerges as a prospective and hitherto unexplored consumer. According to a new Les Mills research, an impressive 86% of Gen Z either engages in regular exercise or has a desire to begin, outperforming Millennial fitness enthusiasm by 5%. Notably, 72% of regular Gen Z exercisers train both inside and outside of the gym, creating profitable prospects for fitness facilities, online trainers, and firms in the supplement and apparel industries. This research highlights the changing landscape of fitness choices and the possibility for development across age groups.

In India, The health and fitness industry is expected to increase significantly, with total sales reaching an estimated US$19.24 million in 2022. The market is estimated to increase at an 11.57% annual rate (CAGR 2022-2027), with a projected volume of US$31.97 million by 2027.

In this market, in-app purchase (IAP) income is likely to be large, reaching US$12.66 million by 2022, while premium app revenue is forecast to be US$0.46 million. Additionally, advertising income in the Health & Fitness sector is expected to reach US$6.12 million in 2022, highlighting the industry's diversified revenue streams.

Promoters of the company

Board of directors 

Vineet Garg - Director

Praveen Venkatesh - Director

Amrita Roy - Director

Ankit Nagori - Director

Fundings

The firm has successfully navigated 15 funding rounds, skillfully balancing 6 early-stage, 7 late-stage, and 2 debt financing projects, totalling an amazing $655 million in the capital, with the highest round securing $180 million. The firm has received investments from a varied pool of 90 investors, including 57 institutional backers and 33 angel investors, indicating a strong and well-supported financial trajectory.

Competitors

Financials of Cultfit

Conclusion

Cult.fit is a leading participant in the health and fitness market, providing a complete and holistic approach to well-being. Cult.fit, previously CureFit, has swiftly extended its market reach since its debut in 2015, owing to the vision and leadership of its founders, Mukesh Bansal and Ankit Nagori.

The company's distinct combination of physical fitness centres, online training platforms, and personalised fitness solutions has sparked widespread interest and a devoted customer base. Cult.fit's strategic focus on varied exercise modules, such as strength and conditioning, yoga, and dance fitness, appeals to a wide audience while also fitting with health lovers' changing interests and demands.

Cult. fit's successful fundraising rounds, collaborations, and acquisitions demonstrate the industry's belief in its business strategy and development potential. Cult.fit's adaptability to shifting trends, concentration on technological integration, and dedication to user-centric experiences place it as a significant participant in the continuing change of the health and fitness scene.

As Cult. Fit expands its footprint and capabilities, it will be interesting to see how the firm navigates the changing fitness industry, handles evolving trends, and remains committed to promoting holistic well-being. Overall, Cult.fit represents a forward-thinking approach to exercise, reflecting the larger move towards proactive health management and a more thorough knowledge of individual wellbeing.