Fitness startup Cult.fit has laid off 100-120 employees as part of a cost cutting exercise, people in the know told ET.
“As part of our regular annual operating planning process, we have reduced some redundant positions with the aim of streamlining operations. This is aimed at improving productivity and setting us up for full profitability in FY25,” the firm said in a statement to ET, while declining to give further details about the impacted roles.
ET reported in late 2022 that the company was aiming for a public listing after its core gym business turned in an operating profit. In February 2022, it acquired a majority stake in F2 Fun & Fitness, becoming the master franchise partner for Gold’s Gym in India and expanding its footprint further.
The company’s operating revenue more than tripled to Rs 694 crore in FY23, from Rs 216 crore in FY22. Its loss for the year narrowed to Rs 551 crore from Rs 688 crore the year before.
Founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit provides fitness-related services through online and offline channels. These include offline group workouts at Cult.fit centres and other gym- or equipment-based workouts at partner gyms and fitness centres across the country, as well as online training.
It had raised more than $650 million from investors like Accel, Temasek, Chiratae and Kalaari Capital. The startup was valued at over $1.5 billion during a $145 million funding round led by Zomato.
Bansal and Nagori undertook a restructuring of the firm in 2020, making its cloud kitchen business an independent entity. Nagori now runs that business as Curefoods.