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Cure.Fit, established in 2016, is a health and fitness startup based in India, co-founded by Mukesh Bansal, Ankit Nagori, and Shivam Tiwari. Valued at above $1.5B, CultFit aims to revolutionize the health and fitness culture in India by combining technology with the fitness experience.
Cult Fit has experienced remarkable growth, establishing over 300 physical centers across numerous cities in India. Mukesh Bansal, the visionary behind Cult Fit, is also the co-founder of other significant startups, including Myntra and Meraki Labs.
Mukesh has also been recognized by Fortune Magazine as one of the Top 40 Entrepreneurs under the age of 40. This article will explore how Cult Fit emerged as a pioneer in the digital fitness landscape in India.
Mukesh Bansal's Early Days
Mukesh Bansal hailed from Haridwar, India, where he completed his foundational education. After that, he pursued a degree in Computer Science and Engineering at the prestigious Indian Institute of Technology in Kanpur (IIT Kanpur).
Upon earning his degree from IIT Kanpur, Bansal embarked on his professional journey as a system analyst at Deloitte in Chicago. He later transitioned to various startups in Silicon Valley, including NexTag, Centrata, and NewScale.
In 2007, Bansal, alongside Ashutosh Lawania and Vineet Saxena, co-founded Myntra. In 2014, Myntra caught the attention of Flipkart, leading to its acquisition for approximately $330M.
Finding Cure.Fit
In 2016, Mukesh Bansal and Ankit Nagori recognized a burgeoning demand for health and fitness solutions in a sector that was already teeming with competition. At that time, the Indian fitness market was saturated with over 120 fitness startups, yet none had managed to stand out significantly.
2015: Machine-Free Cult
The journey to establishing Cult Fit began with the original Cult, which was founded in Bengaluru in 2015 by Deepak Purua and D. Tang. These two visionaries sought to promote a machine-free approach to fitness, emphasizing education and community engagement rather than conventional gym equipment.
Their model quickly gained traction, attracting 200 clients within just six months through word-of-mouth alone, despite starting with only nine trainers.
Recognizing the potential of this innovative concept, Bansal and Nagori, who had significant backgrounds in e-commerce and fitness, acquired Cult for approximately ₹20 crore (around $3 million).
This acquisition laid the groundwork for what would become Cult Fit, a brand that not only made fitness appealing but also leveraged technological advancements to revolutionize the industry.
Expanding Cult to Cure.Fit
With an impressive growth rate and a robust digital presence, Cult Fit has since scaled operations across 32 cities, significantly outperforming its competitors by focusing on community building, branding, and a keen understanding of the market.
After acquiring the original Cult brand, the founders recognized the synergy between Cult’s proven operational success and their own technological prowess at Cure.Fit.
Initially, Cult continued to operate as an independent entity under Cure.Fit until 2021, when it was rebranded as Cult Fitness. This rebranding was necessitated by the growing recognition of the Cult name, which had gained significant traction in the market.
The founders implemented a horizontal acquisition strategy, aiming to broaden their service offerings across multiple facets of fitness and wellness. They identified four key areas for growth: physical fitness, preventive health, mental health, and nutrition. This led to the establishment of sub-brands, including Cult Sport, CareFit, MindFit, and EatFit, each targeting specific aspects of health and wellness.
Their aggressive acquisition strategy involved assimilating companies that had established physical infrastructures or demonstrated operational excellence, allowing Cult Fit to rapidly scale its services while addressing customer needs more effectively.
COVID-19: The Breakthrough Year For CultFit
During the COVID-19 pandemic, Cult Fit experienced explosive growth by quickly transitioning their care.fit platform to a digital-first teleconsultation model. Prior to the crisis, care.fit was focused on providing excellent offline experiences with minimal wait times. However, as lockdowns confined customers to their homes, the urgency for accessible healthcare surged.
To adapt, Cult Fit shifted its operations online, allowing its users to consult doctors via phone or video calls. This presented challenges, particularly for doctors who were accustomed to traditional practices and needed to master digital tools and create electronic prescriptions. Addressing these issues necessitated the development of an intuitive user interface and efficient prescription models.
Additionally, with individuals confined to their homes for the first time, the startup seized the opportunity to aggressively promote their app, bringing fitness directly to people's doorsteps. They initially offered free access to courses within the app, which significantly boosted user acquisition during this period.
Skyrocketing Growth with Offline Gyms & Greater Distribution Network
After establishing their brand online during COVID, Cult Fit aimed to ensure that customers could easily access their services, ideally with a gym located within a 20-minute walk.
Post-COVID, people were eager to get out of their homes, socialize, and join offline gyms. To achieve this expansive distribution, they employed three strategies: building their own centers, utilizing a marketplace model to onboard existing gyms, and implementing a franchise system similar to major fast-food brands.
This multi-faceted approach enabled Cult Fit to quickly access new markets while maintaining a diverse range of offerings.
Expanded Product Offerings
In pursuit of becoming the largest fitness community globally, Cult Fit recognized the need to diversify its product range. Acquisitions of companies such as Urban Terrain and RPM Fitness allowed them to broaden their selection of fitness equipment, catering to various price points and customer preferences.
At present, the company also has its own retail sports brand called CultSport, which sells everything from apparel to smartwatches, footwear, sporting equipment, cycle, and more.
Additionally, they enhanced their health and wellness offerings by acquiring respected food chains like K Zone and preventive healthcare firms like Serenity. These strategic moves facilitated rapid market entry and allowed Cult Fit to meet diverse customer needs effectively.
Superior Technology and Expertise
To excel as a top-tier fitness platform, Cult Fit knew they required cutting-edge technology. The acquisition of Onyx, an acclaimed fitness app, significantly improved the app's interface and fitness tracking capabilities, enhancing the user experience for their virtual sessions.
This acquisition not only expedited their technological advancements but also enabled them to expand their digital services to international markets, showcasing their superior technological capabilities.
Cure Fit’s Ambitious Market Goals
The marketing head of Cult Fit once declared the company’s aspiration to capture a 50% share of the fitness market across various formats. This ambitious goal motivated the founders to pursue acquisitions of leading companies in different segments.
That included acquisitions of some of the biggest fitness brands like Gold’s Gym, Urban Terrain, Fitkit, etc. By acquiring these businesses, Cult Fit was able to bypass the lengthy process of building products from scratch, allowing for quicker market penetration and growth.
Strategic Investor Relationships
What sets Cult Fit apart from typical startups is its advantageous position right from the start. Co-founder Mukesh Bansal, with his prior experience at Myntra and a successful exit valued at around ₹2,000 crore ($267M), attracted significant investor interest.
Securing funding became a straightforward task, as venture capitalists were eager to back a proven entrepreneur. This led to Cult Fit raising ₹100 crore (approximately $15M) from notable investors like Accel Partners and IDG Ventures before even launching their first product.
Final Thoughts
While Cult Fit's strategy has proven successful, replicating this model may be challenging for bootstrapped companies. The combination of strong leadership, strategic acquisitions, and investor support has been crucial for their rapid growth. Of course, all that was possible because of the experienced and talented founder, Mukesh Bansal.
Understanding these dynamics can offer valuable insights for other companies looking to expand their market presence. Cult Fit exemplifies how innovative strategies and leveraging existing resources can unlock tremendous potential in any industry.