Cult.fit, the renowned health and wellness platform previously known as Cure.fit, has reaffirmed its position as a frontrunner in the industry with a significant infusion of funding. Backed by Tata Digital and led by existing investor Valecha Investments, the Bengaluru-based company has secured Rs 84.5 crore (approximately $10.2 million) in an extended Series F round. This funding marks Cult.fit’s return to the fundraising arena after nearly two years and underscores its continued growth trajectory in the competitive health and wellness market.
The funding round, spearheaded by Valecha Investments with a contribution of Rs 36.36 crore, highlights the enduring confidence of existing backers in Cult.fit’s vision and potential. Notably, Gul Advani also played a substantial role in this round, injecting Rs 28.26 crore into the company. Additionally, participation from other investors, including Extreme Brands LLP (Exceed Entertainment), L&K Wellness Services (Reset Life), and individual investors like Surendra Kedia, Sangeeta Mansharmani, Shraddha Sheth, Nikhil Kakkar, and Prashant Machwe, further bolsters Cult.fit’s financial position.
The latest funding round builds upon Cult.fit’s previous success in raising capital, including a significant raise of nearly Rs 300 crore in the last quarter of FY22. Despite this substantial financial backing, the company’s recent funding efforts have largely flown under the radar, reflecting its focused approach to growth and expansion.
With cumulative funding exceeding $670 million to date, Cult.fit has attracted investments from a diverse array of prominent entities, including Zomato, Tata Digital, Temasek, Kalaari Capital, and South Park Commons. This broad support underscores Cult.fit’s status as a key player in the health and wellness ecosystem, with a robust platform and innovative offerings that resonate with consumers.
According to insights from startup intelligence platform TheKredible, Cult.fit currently boasts a post-money valuation of Rs 12,400 crore, further solidifying its position as a unicorn in the Indian startup landscape. Following the completion of this latest funding round, Accel Partners emerges as the largest stakeholder in Cult.fit, holding 17.25% of the company’s shares, while founder and CEO Mukesh Bansal retains a significant stake of 10.5%.
Cult.fit’s journey to unicorn status was accelerated in November 2021 when Zomato, under the leadership of Deepinder Goyal, acquired a 6.4% stake in the company through a $100 million transaction. Since then, Cult.fit has continued to expand its offerings and reach, leveraging partnerships and strategic initiatives to drive growth.
In a recent strategic move aimed at enhancing productivity and achieving profitability by fiscal year 2025, Cult.fit undertook a workforce restructuring, resulting in the layoff of approximately 150 employees. This decision underscores the company’s commitment to optimizing its operations and maximizing efficiency in pursuit of long-term sustainability.
Despite the challenges posed by the global health crisis and evolving market dynamics, Cult.fit has demonstrated resilience and adaptability, evidenced by its impressive financial performance. Revenue from operations surged by 3.2 times to reach Rs 694 crore in FY23, compared to Rs 216 crore in FY22, reflecting the growing demand for its services. Moreover, the company successfully reduced losses by 20%, bringing them down to Rs 551 crore (excluding exceptional items or non-cash expenses) in FY23, down from Rs 688 crore in FY22.
As Cult.fit continues to chart its course in the competitive health and wellness landscape, fueled by strategic investments and a commitment to innovation, the company remains poised for further growth and success in the months and years ahead.
