CureFit’s FY24 Loss Zooms 42% To INR 889 Cr

SUMMARY

The rise in loss came despite the startup’s operating revenue growing 33.6% to INR 926.6 Cr in FY24 from INR 693.7 Cr in FY23

However, profitability seems to be a challenge for the startup as EBITDA loss rose 123.41% to INR 587.97 Cr during the fiscal under review from INR 263.2 Cr in FY23

Founded in 2016, CureFit runs physical fitness platform Cultfit, mental health platform Mindfit, primary care vertical Care.fit, among others

Zomato-backed fitness startup CureFit’s consolidated net loss for the financial year ending March 2024 (FY24) widened 42% to INR 888.5 Cr from INR 625.5 Cr in the previous fiscal year due to an increase in cash burn. 

The rise in loss came despite the startup’s operating revenue growing 33.6% to INR 926.6 Cr in FY24 from INR 693.7 Cr in FY23. 

Of this, INR 663.1 Cr came from services, up 46.58% growth from INR 452.4 Cr in the previous year. Meanwhile, revenue from product sales grew 8.13% to INR 256.7 Cr from INR 237.4 Cr in the previous year.

Founded in 2016 by Mukesh Bansal and Ankit Nagori, CureFit runs physical fitness platform Cultfit, mental health platform Mindfit, primary care vertical Care.fit, among others. However, Nagori later left the startup to work on his new venture, cloud kitchen startup Curefoods. 

CureFit is eyeing profitability by FY25. At the start of this calendar year, it laid off about 120 employees in a restructuring exercise. 

However, profitability seems to be a challenge for the startup. Its EBITDA loss rose 123.4% to INR 587.97 Cr during the year under review from INR 263.2 Cr in FY23. 

Consequently, EBITDA margin contracted 25 percentage points to -63% from -38% in FY23.

In April, CureFit also underwent a leadership reshuffle. 

Zooming Into The Expenses

Advertising & Promotional Expenses: The expenses under this head surged 40.67% to INR 188.5 Cr from INR 134 Cr in FY23. 

Employee Benefit Expenses: The company managed to decrease its employee benefit expense by 5.62% to INR 324 Cr, partially due to workforce restructuring, including layoffs in the previous fiscal.

Legal & Professional Expenses: Expenses under this head rose sharply by 56.62% to INR 124.2 Cr from INR 79.3 Cr in FY23.

CureFit has raised a total funding of over $750 Mn till date. It counts Accel, Temasek, Kalaari Capital, among others, as its backers.