Bengaluru-based Cure.fit raises $2 million, CEO says, 'It was an inbound request from existing investor'

CureFit, the Bengaluru-based fitness unicorn preparing for IPO, has raised about $2 million (Rs 16.8 crore) in fresh funding from existing investor First Luxembourg SCA, a step-down subsidiary of German wellness conglomerate LifeFit Group. 

The funding, executed through the issuance of 340,000 compulsorily convertible preference shares (CCPS) at Rs 483.62 apiece, was completed at a flat valuation of $1.6 billion, a figure unchanged from the company’s last reported valuation four years ago.

Naresh Krishnaswamy, CEO of Cure.fit, confirmed the fundraise and called it as investor-initiated. “While we do not have a need for raising funds for any of our corporate purposes, it was an inbound request from an existing investor, which we took forward,” Krishnaswamy told Inc42.

Founded in 2016 by serial entrepreneurs Mukesh Bansal and Ankit Nagori, CureFit operates an integrated health and wellness platform under the Cult.fit brand. The company’s offerings span physical fitness centers, mental health services through Mind.fit, and primary care clinics under Care.fit. The fitness chain, Cult.fit, includes over 700 centers across more than 40 Indian cities and follows a hybrid model of company-owned, franchised, and third-party partner-operated gyms.

With cumulative funding of $660 million from marquee investors such as Zomato, Tata Digital, Temasek, Accel, Kalaari Capital, and Hrithik Roshan, CureFit has been on a steady march toward profitability.

CureFit reported operating revenue of Rs 926.6 crore in FY24, a 33.6% increase from Rs 693.7 crore in FY23. However, its net loss widened 42% to Rs 888.5 crore in FY24, largely due to increased cash burn.

The company’s revenue is concentrated in six metropolitan hubs, including Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune, and Chennai, which together account for 90% of overall business.