Fitness Startup Curefit Releases FY24 Results, Losses Rise 42% To INR 889 Cr

CureFit

Three points you will get to know in this article:

  • The increase in loss occurred despite the startup’s operating revenue expanding 33.6% to INR 926.6 Cr in FY24 from INR 693.7 Cr in FY23.
  • However, profitability appears to be a struggle for the business, as EBITDA loss increased by 123.41% to INR 587.97 Cr during the fiscal under review from INR 263.2 Cr in FY23.
  • CureFit was founded in 2016 and operates many platforms, including Cultfit for physical fitness, Mindfit for mental health, and Care.fit for primary care.

Curefit’s Losses Jumps 42%, Revenue Rises by 33.6%

curefit - startuparticle

CureFit, a Zomato-backed fitness startup, had its consolidated net loss for the fiscal year ending March 2024 (FY24) climb by 42% to INR 888.5 Cr from INR 625.5 Cr the previous fiscal year due to increased cash burn.

CureFit, founded in 2016 by Mukesh Bansal and Ankit Nagori, operates a variety of platforms, including Cultfit for physical fitness, Mindfit for mental health, and Care.fit for primary care. However, Nagori later departed the firm to pursue his new endeavour, cloud kitchen startup Curefoods.

The increase in loss occurred despite the startup’s operating revenue increasing by 33.6% to INR 926.6 Cr in FY24 from INR 693.7 Cr in FY23.

Services accounted for INR 663.1 crore, up 46.58% from INR 452.4 crore the previous year. Meanwhile, revenue from product sales increased by 8.13% to INR 256.7 crore from INR 237.4 crore the previous year.

CureFit’s Profitability Plan, EBITDA, Leadership Changes

CureFit aims to be profitable by fiscal year 25. It laid off approximately 120 staff at the start of current calendar year as part of a reorganization process.

However, profitability appears to be an issue for the firm. Its EBITDA loss increased by 123.4% to INR 587.97 crore in the fiscal year under review, up from INR 263.2 crore in FY23.

As a result, EBITDA margin fell 25 percentage points to -63% from -38% in FY23.

CureFit also reshuffled its leadership in April.

CureFit’s Expenses, Costs, Total Funding

Advertising and promotional expenses increased 40.67% to INR 188.5 crore from INR 134 crore in FY23.

Employee Benefit Expenses: The company reduced its employee benefit expense by 5.62% to INR 324 crore, owing in part to workforce restructuring, including layoffs in the preceding fiscal year.

Legal & Professional Expenses: Expenses in this category increased by 56.62% to INR 124.2 crore from INR 79.3 crore in FY23.

CureFit has raised more than $750 million in funding to far. Its supporters include Accel, Temasek, and Kalaari Capital, among others.

Manvendra Hada

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