The Bangalore-based fitness startup named CureFit has raised $10 Mn in debt and its financers include Axis Bank and HDFC Bank. This latest fundraise is a part of a previous round where it secured $3.2 Mn debt funding from Kris Gopalakrishnan-founded Prathithi Investment Trust in August 2017 and Trifecta Capital.
According to the reports, the company is planning to raise an additional fund in order to meet its capital expenditure. The Co-founder of CureFit commented on the development saying, “Almost 80% of our capex has been funded through debt, and I expect that even in the future. The attitudes (of banks) have changed significantly. They continue to focus on unit economics and return on capital, but they like the asset-heavy model.”
In order to bolster the technology platforms and even finance the Cult fitness centres, CureFit will use the fresh debt capital from the HDFC and the Axis Bank. A significant portion of the proceeds will also go into marketing.
ALSO READ: Byju’s In Talks With SoftBanks
CureFit was established in the year 2016 by the former executives of Flipkart Mr. Ankit Nagori and Mr. Mukesh Bansal, the company serves to be the holistic healthcare platform with a focus on body, diet and mind. Also, their services include Cult.fit, Eat.fit and Mind.fit.
According to the company website, Eat.fit is a subscription-based nutritive food delivery vertical aimed at facilitating health and wellness through proper diet. Cult.fit, on the other hand, offers customised workout programmes to members. Mind.fit is concerned with promoting mental wellbeing.
In addition to 10 brick-and-mortar centres around Bengaluru, the fitness startup has also developed an app for Android and iPhones, which was launched in May 2017. The app allows members to work out at homes.
CureFit has raised more than $45mn in funding through multiple rounds from the investors like UC-RNT Fund, Kalaari Capital, IDG Ventures, Accel Partners and others. In the year 2016, CureFit has raised $15Mn in Seies A funding from IDG Ventures, Kalaari Capital and the Accel Partners.
Later in May 2017, the startup secured another $3 Mn from angel investors and UC-RNT fund, which is a joint venture between Ratan Tata’s RNT Associates and the University of California.
In August last year, the Bengaluru-based fitness startup secured another $25 Mn in Series B round of funding from existing investors Accel Partners, IDG Ventures, Kalaari Capital and UC-RNT fund. At the time, it was reported that the capital would be utilised to expand the company’s geographical footprint in the country and scale-up its business verticals.
Last year, CureFit also teamed up with Hrithik Roshan’s lifestyle brand HRX to offer the latter’s workout plans under the Cult.fit programme. In August 2017, the company reportedly signed on Hrithik Roshan as its brand ambassador. The five-year contract was valued at $15.6 Mn (INR 100 Cr). The company is currently looking to expand operations through acquisitions. Over the past year, CureFit took over Bengaluru-based CULT for $3 Mn as well as Tribe Fitness.
ALSO READ: Swiggy Is Planning To Extend Its Services To Grocery And Medicines
