Team Startupcity

·  $2M Raised from existing investor First Luxembourg SCA at a flat $1.6B valuation.

·  700+ Centers under the Cult.fit brand across 40+ cities in India.

·  FY24 Revenue Rises 34%, but net loss widens to Rs 888.5 crore due to cash burn.

In a new funding maneuver, Bengaluru-based fitness and wellness startup Cure.fit has raised $2 million (around Rs  16.8 crore) from existing investor and step-down subsidiary of Germany's LifeFit Group, First Luxembourg SCA.

The transaction was concluded by issuing 340,000 compulsorily convertible preference shares (CCPS) at Rs  483.62 each, keeping the valuation of the startup at the last estimate of $1.6 billion unchanged since 2021.

Cure.fit CEO Naresh Krishnaswamy had confirmed the funding and stated it was not part of a fundraise. "This was an inbound ask from a current investor. We do not have any capital needs for corporate activities at this point in time,".

Also Read- Cure.fit acquires digital fitness company Onyx

Established in 2016 by entrepreneurs Mukesh Bansal and Ankit Nagori, Cure.fit owns the Cult.fit brand a holistic wellness platform spanning physical wellness (Cult.fit), mental well-being (Mind.fit), and primary care services (Care.fit). The brand has become one of the largest fitness ecosystems in India, with more than 700 centers across 40+ cities, managed through a hybrid company-owned, franchisee-operated, and partner-operated outlet model.

Supported by heavyweight investors like Zomato, Tata Digital, Temasek, Accel, Kalaari Capital, and Bollywood star Hrithik Roshan, Cure.fit has raised more than $660 million till now. With an increasing topline, the company still manages to keep the balancing act of growth and profitability going.

Cure.fit reported Rs  926.6 crore in operating revenue for FY24 a 33.6% increase from Rs  693.7 crore in FY23. Its net loss, though, ballooned to Rs  888.5 crore in FY24, primarily because of high operational expenditure and cash burn. About 90% of the company's business comes from six major metro cities Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune, and Chennai.