Cult.fit's e-commerce arm to drive growth, profitability by 2025

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While Cultsport currently generates 30% of the firms revenue, Krishnaswamy expects it to rise to 50% within 2-3 years, driven by brand credibility. The brand is growing well and maturing faster than expected, he added. 

"We are already seeing great customer acceptance and improving market share. Cult’s brand is lending credibility, which is helping penetrate the top cities quickly." 

Founded by Myntra's Mukesh Bansal in 2016, Cult.fit, formerly Curefit, expanded rapidly in metro areas through a mix of owned gyms and franchises. In FY23, the gym business' revenue tripled from a year ago to ₹445 crore, while losses declined by 20% to ₹551 crore.

Backed by marquee investors such as Temasek, Chiratae Ventures and Kalaari Capital, it has raised over $670 million to date, including a $10-million round led by existing investor Valecha Investments in February.

Launched in 2019, Cultsport seeks to expand its footprint in India. According to a growth-stage investor, seeking anonymity, Cult.fit’s foray is a smart call, potentially creating an entire ecosystem of fitness products and services.

In recent years, India's booming fitness products sector has witnessed the launch of several brands offering athleisure wear, at-home workout equipment, and fitness trackers such as weighing scales and smartwatches. 

Celebrity-led brands including actor Hrithik Roshan’s HRX and cricketer Virat Kohli’s one8 have added to the appeal, making it aspirational for consumers.

Companies such as Blissclub, Portal and Fittr have secured early-stage funding recently on the back of robust investor interest in fitness-centric brands. 

Cashing in on the trend, Cult has also been on a massive expansion spree following the launch of its first offline store in Bengaluru in December. It aims to open 20 more outlets by the end of this financial year, Krishnaswamy said.

For the fitness freaks

According to Krishnaswamy, the e-commerce offering is a natural extension of Cult.fit's gym business, which benefitted from the company’s network of over 500 fitness centers in attracting health-conscious consumers. “People attribute Cult’s brand to its products, which helps improve acceptance."

The growth-stage investor cited above echoed similar views. “Cult.fit has a bigger advantage in terms of audience as compared to any other brand. Cult.fit’s gyms have created strong enough brand recall value."

“However, despite the advantages, scaling a direct-to-consumer brand has its own set of challenges, especially in controlling marketing costs while retaining customers in a competitive market," he added.

According to Krishnaswamy, Cultsport has a strong presence in the hardline category, which includes treadmills, spin bikes and outdoor cycles, and contributes a “sizeable" portion to its revenue. The vertical is expected to grow by 40-50% year-on-year, he added.

Cult.fit’s growth strategy revolves around markets beyond metros considering that nearly 40% of online sales come from smaller cities. Building trust among consumers in these regions is vital, Krishnaswamy said. "Affordability is not an option in tier 2 and beyond. But trust is crucial.

Customers in non-metros are increasingly drawn to interesting consumer brands, making it a lucrative opportunity. However, differentiation will matter, the investor added.

According to a 2023 survey by Cyber Research Media, shoppers beyond metros are slowly catching up with tier 1 cities in terms of time spent online.