- ByStartupStory | April 11, 2024
In a strategic move marking a significant leadership transition, Cultfit, the popular fitness startup backed by Zomato and Tata Digital, has announced the appointment of Naresh Krishnaswamy as its new Chief Executive Officer (CEO). This development comes as co-founder and former CEO Mukesh Bansal assumes the role of Executive Chairman, shifting his focus towards broader strategic initiatives within the company.
Krishnaswamy, who previously served as the head of fitness services at Cultfit, has been spearheading key operations since Bansal’s departure to Tata Digital as its President. His elevation to the position of CEO was internally communicated in October and has now been formally announced, according to sources familiar with the matter.
Confirming the appointment, a spokesperson for Cultfit stated, “Naresh Krishnaswamy has been appointed as the Chief Executive Officer of Cultfit. He brings a wealth of experience and expertise to the role, having demonstrated exceptional leadership during his tenure with the company.”
Prior to his role at Cultfit, Krishnaswamy served as the Chief Revenue Officer at Myntra, a prominent online fashion retailer co-founded by Bansal. With his extensive background in e-commerce and fitness services, Krishnaswamy is poised to lead Cultfit through its next phase of growth and expansion.
While Bansal will continue to be actively involved in Cultfit for strategic matters and will participate in board meetings, the day-to-day operations will be overseen by Krishnaswamy.
Addressing the leadership transition, a source close to the company revealed, “It’s been in the works for some time and (the elevation) was announced internally a few months back. Mukesh gets involved for broad strategic matters and attends board meetings.”
Bansal’s transition to the role of Executive Chairman comes as he gears up for a new venture in collaboration with Zomato co-founder Mohit Gupta, focusing on the fashion space. The venture is currently in discussions with potential investors to secure new capital for its endeavors.
Bansal’s tenure at Tata Digital, where he oversaw key projects like the Tata Neu superapp, concluded early last year, paving the way for his renewed focus on entrepreneurial pursuits.
Despite recent challenges, including a round of layoffs in January as part of a cost-cutting initiative, Cultfit remains optimistic about its future prospects. The company is eyeing an IPO within the next two years and aims to achieve profitability in the near term.
In the fiscal year 2023, Cultfit reported a significant surge in operating revenue, exceeding Rs 694 crore, while narrowing its losses to Rs 551 crore from Rs 688 crore in the previous year.
Furthermore, Cultfit’s cloud kitchen division, Curefoods, was spun off as a separate entity in late 2020, under the leadership of Ankit Nagori. The company has also divested its holding in Curefoods through secondary transactions, a move indicative of its strategic realignment and focus on core fitness offerings.
Cultfit’s diversified portfolio of brands, including EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle, underscores its commitment to catering to evolving consumer preferences and driving innovation in the fitness and wellness space.
