Tata Digital-backed fitness company Curefit, renowned for its brands Cultfit, Sugarfit, and Carefit, has reportedly undergone a significant workforce reduction. This move is part of the company’s strategy to streamline operations and achieve profitability by 2025 (FY25).
Impact on Employees: Reports suggest that the layoffs have affected a substantial number of employees, ranging between 100 and 150. The impact has been observed predominantly among mid to senior-level staff across different company divisions, including Sugar.fit, Carefit, and Cultfit. This current round of layoffs is the most substantial workforce reduction since 2020 when the company cut 800 jobs due to the pandemic.
Financial Growth and Restructuring: Curefit has experienced notable financial growth, with operating revenue soaring to Rs 694 crore in FY23, a significant increase from Rs 216 crore in FY22. Concurrently, the company narrowed its losses by 20%, amounting to Rs 551 crore in FY23.
The company, having shifted to an asset-light franchise model for its gyms and fitness centres, is now focusing on transforming into an offline-centric gym brand, moving away from its initial tech-enabled business model.
Preparing for IPO: Curefit is gearing up for a public listing in the coming years, eyeing an initial public offering (IPO) after achieving and sustaining profitability for a few consecutive quarters.
Investors and Valuation: Established in 2016 by Mukesh Bansal and Ankit Nagori, Curefit has secured over $650 million from investors such as Accel, Temasek, Chiratae, and Kalaari Capital. The company attained a valuation of over $1.5 billion in a funding round led by Zomato. For more information, stay tuned to the IncBasil Website.
