Health and fitness startup Cult.fit has reportedly secured Rs 84.5 crore (approximately $10.2 million) in a funding round led by existing investor Valecha Investments, contributing over Rs 36 crore. Other notable backers included Gul Advani of Sun-n-Sand Hotels, investing Rs 28.26 crore, along with contributions from Extreme Brands LLP, L&K Wellness Services, and a group of individual investors.
Cult.fit’s board has approved special resolutions to issue 1,55,080 equity shares to Extreme Brands LLP and 15,92,157 Series C compulsory convertible preference shares (CCPS) to other investors at an issue price of Rs 483.62 per share, raising Rs 84.5 crore, as per regulatory filings with the Registrar of Companies.
Founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit is transitioning from a tech-first gym chain to a more offline-focused model, aiming to expand its physical presence across the country. Its offerings range from group workouts at Cult.fit centers to gym- and equipment-based workouts at partner facilities, as well as online training, catering to diverse fitness enthusiasts.
In FY23, Cult.fit’s operating revenue surged more than threefold to Rs 694 crore from Rs 216 crore in FY22. Despite the revenue growth, Cult.fit has managed to reduce its losses to Rs 551 crore in FY23 from Rs 688 crore the previous year. While focusing on revenue growth, Cult.fit has also monitored its expenses closely. Employee benefits, the largest cost center, rose by 17.5% to Rs 343 crore, including Rs 86.3 crore as a non-cash expense for Employee Stock Option Plans (ESOPs).
Other expenses, covering material consumption, advertising, IT, commissions, and legal fees, contributed to a total expenditure of Rs 1493 crore, marking a 50.2% increase from the previous year.
