Mukesh Bansal's Cure.fit lays off over 100 employees in an attempt to achieve profitability

Tata Digital-backed fitness firm Curefit, known for its brands Cultfit, Sugarfit, and Carefit, has reportedly laid off a significant number of employees. 

The development comes as the company aims to streamline operations and achieve profitability by the financial year 2025 (FY25).

"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," a company's spokesperson said.

Impact on the workforce

Multiple media reports indicate that the layoffs have affected between 100 to 150 employees. The report also said the layoffs primarily impacted mid to senior-level employees across various divisions of the company, including Sugar.fit, Carefit, and Cultfit.

The current round of layoffs marks its most significant workforce reduction since 2020, when it cut 800 jobs due to the pandemic.

Financial growth and restructuring

Curefit has seen substantial financial growth. The firm's operating revenue more than tripled to Rs 694 crore in FY23, up from Rs 216 crore in FY22. Simultaneously, its losses narrowed by 20% to Rs 551 crore in FY23.

The company, which pivoted to an asset-light, franchise model for its gyms and fitness centers, is now focusing on transitioning into an offline-focused gym brand, moving away from its initial tech-enabled business model.

Preparing for IPO

Notably, Curefit is also preparing for a public listing in the coming years. The company plans to look at an initial public offering (IPO) after achieving and sustaining profitability for a couple of quarters. 

Curefit investors

Founded in 2016 by Mukesh Bansal and Ankit Nagori, Curefit has raised over $650 million from investors like Accel, Temasek, Chiratae, and Kalaari Capital. The company was valued at over $1.5 billion in a funding round led by Zomato.

Join our new WhatsApp Channel for the latest startup news updates