Naresh Krishnaswamy Promoted to CEO, Mukesh Bansal Chairman of Cult.fit

In a significant shakeup at Cult.fit, one of its founders and former CEO, Mukesh Bansal, has taken on the role of executive chairman at the fitness unicorn. Meanwhile, Naresh Krishnaswamy, previously head of fitness services, has stepped up as the new CEO of the company. A representative from the startup confirmed this change when contacted by Inc42, although declined to provide further comment.

According to reports from Economic Times, Krishnaswamy assumed the CEO position internally back in October of last year, albeit without a formal announcement being made.

“The promotion of Krishnaswamy has long been anticipated and was internally disclosed several months ago. Mukesh contributes primarily to overarching strategic decisions and regularly participates in board meetings,” shared a knowledgeable source with the publication. The incoming CEO has reportedly been steering the ship and overseeing essential operations within the fitness company ever since Bansal transitioned to Tata Digital as its president in mid-2021.

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Bansal bid adieu to the digital wing of the Tata Group early last year. Since then, he’s been pouring his energy into a fresh fashion venture alongside Zomato’s co-founder, Mohit Gupta. Together, they’ve been in deep discussions with numerous investors, aiming to secure funds for their upcoming startup. Yet, amidst this new endeavor, Bansal remains engaged in steering the ship at Cult.fit, particularly on matters of strategy.

Back in 2016, Bansal, along with Ankit Nagori, set the wheels in motion for Cult.fit. This platform offers a variety of fitness solutions, spanning from workouts at their own centers to supplementary services at affiliated gyms and fitness spots nationwide.

The startup has raised over $670 million in funding to date and is supported by companies such as Zomato, Temasek, and Kalaari Capital.

Significantly, the reorganization occurred just two months after the fitness unicorn secured INR 84.5 crore in its Series F funding round, with Valecha Investments leading the way as an existing investor. Other participants in the round included Extreme Brands and L&K Wellness Services, among others.

Krishnaswamy has implemented a significant restructuring plan at the startup in order to reduce losses and improve operational efficiency. As part of this initiative, the company had to let go of approximately 120 employees earlier this year. The layoffs affected staff members across various sub-brands including Sugar.fit, Carefit, and Cult.fit.Top of Form

According to reports, Cult.fit’s operating revenue in the financial year 2022-23 (FY23) has more than tripled to INR 694 Cr from INR 216 Cr in FY22. Additionally, the unicorn has reduced its loss by nearly 20% year-on-year to INR 551 Cr in the year ending March 2023.

In a noteworthy leadership transition at Cult.fit, Co-Founder Mukesh Bansal assumes the role of executive chairman, while Naresh Krishnaswamy steps up as the new CEO. Despite Bansal’s involvement in a fashion venture, he remains actively engaged in driving Cult.fit’s strategic vision. Founded in 2016, Cult.fit has secured substantial funding and recently restructured post Series F funding, leading to operational improvements. The company’s FY23 operating revenue surged to INR 694 Cr, with losses reduced by nearly 20% to INR 551 Cr – indicative of the positive impact of the restructuring efforts.