Tata and Accel-backed fitness startup Cult.fit is expecting its products business to outdo fitness services in terms of revenue in the next two years, senior executives in the company told YourStory.
While Business Head Naresh Krishnaswamy and Chief Financial Officer (CFO) Bishnu Hazari did not divulge any numbers, they said that the company’s direct-to-consumer segment, which offers fitness products like equipment, nutraceuticals, and sportswear, has done “tremendously well” over the last few months.
The segment was expanded a year ago and currently contributes to a third of Cult.fit’s revenue. Of all the products, the top offerings in terms of revenue include cardio equipment and athleisure wear—which hold a 25% market share.
The company is also eyeing an initial public offering (IPO) in the next 12-18 months, according to the executives. They said that the firm remains committed to its core business—fitness services through group classes, fitness centres, gymnasiums, and sports centres—and is working towards achieving profitability in both the fitness services and product segments in the coming months.
“Both segments are already operationally profitable and we are aiming to turn them profitable on an EBIDTA level in the next few months,” Naresh said.
Over the last six years, Cult.fit has made several acquisitions, including fitness equipment businesses such as Onefitplus and RPM fitness.
Bishnu noted that the company’s sentiment remained unaffected by the current market conditions and is confident of a robust stock listing. “What’s more important is how we manage the business 5-10 years after the listing takes place,” he added.
Cult.fit (initially named Curefit), founded in 2016 by Mukesh Bansal and Ankit Nagori, initially focused only on group classes. With over 600 fitness centres across the country, Cult.fit now offers fitness classes—both offline and online. It has raised close to $685 million to date from investors including Tata, Accel, Zomato, and Tamasek.
The executives also added that its non-core segments such as Mind.fit and diagnostics will be put on ‘sedated mode’ for the next couple of months as the company diverts focus on its core operations. They noted that the diabetic care segment Sugar.fit continues to do well and will remain an area of focus.
