CureFit Suffers ₹888 Crore Loss in Financial Year 2024

IANS

The recent financial disclosure from CureFit, a leading fitness startup, has raised eyebrows in the business community. The company’s consolidated loss for the fiscal year 2024 has seen a significant surge of 42%, amounting to Rs 888.5 crore, a substantial increase from Rs 625.5 crore in the previous fiscal year. This increase in losses is primarily attributed to the company’s high cash burn rate.

The company’s EBITDA loss, a critical measure of its operational performance, has also seen a sharp rise. It has surged by a staggering 123.4% to Rs 587.97 crore in FY24, up from Rs 263.2 crore in FY23. This indicates a significant increase in the company’s operating expenses and a decrease in its operational efficiency.

One of the major contributors to the company’s increased losses is its advertising and promotional expenditure. CureFit’s spending on advertising and promotion has seen a year-on-year increase of 40.67%, rising to Rs 188.5 crore in FY24 from Rs 134 crore in FY23. This increase in advertising and promotional expenditure is indicative of the company’s aggressive marketing strategies to capture a larger market share and attract more customers.

Simultaneously, the company’s expenditure on legal and professional services has also seen a significant increase. It has risen by 56.62% from Rs 79.3 crore in FY23 to Rs 124.2 crore in FY24. This increase in legal and professional expenses could be attributed to the company’s efforts to comply with regulatory requirements, protect its intellectual property rights, and manage its legal affairs effectively.

Cure.fitCure.fit Official Website

Interestingly, CureFit’s expenditure on employees has seen a decrease of 5.62% to Rs 324 crore in the last financial year. This decrease in employee expenditure is due to the company’s workforce restructuring and layoffs in FY24. The company slashed around 120 jobs in January 2024 as part of a restructuring exercise. These job cuts impacted workers across the company’s various brands, including Sugar.fit, Carefit, Cultfit, among others.

Despite the increased losses, CureFit’s operating income has seen a positive growth. It has increased by 33.6% to Rs 926.6 crore in FY24, up from Rs 693.7 crore in FY23. A significant portion of this income, Rs 663.1 crore, has come from services, marking a 46.58% increase from Rs 452.4 crore in FY23. This indicates that the company’s services are gaining traction and contributing significantly to its revenue.

In addition to the income from services, CureFit’s income from the sale of products has also seen a modest increase. It has risen by 8.13% to Rs 256.7 crore from Rs 237.4 crore in FY23. This suggests that the company’s products are also finding acceptance among consumers and contributing to its revenue.

CureFit was founded in 2016 by Mukesh Bansal and Ankit Nagori. The company operates several platforms, including the physical fitness platform Cultfit, mental health platform Mindfit, and primary care vertical Care.fit. Despite the financial challenges, the company has managed to raise more than $750 million in funding so far. Its investors include prominent names like Accel, Temasek, Kalaari Capital, and others.

Mukesh Bansal, a known fitness enthusiast, has been instrumental in driving the company’s vision and strategy. His entrepreneurial journey began with Myntra, which was acquired by Flipkart in 2014. After serving as the head of commerce at Flipkart, Mukesh ventured into the fitness sector with CureFit. His passion for fitness and his entrepreneurial acumen have been key to the company’s growth and expansion.