Fitness unicorn Cult.fit, backed by prominent investors including Zomato and Tata Digital, has reportedly undertaken a workforce reduction, terminating approximately 150 employees in an effort to curtail cash burn, according to a report on Tuesday.
The Bengaluru-based unicorn, founded in 2016 by Mukesh Bansal and Ankit Nagori, has been a frontrunner in offering a comprehensive suite of fitness services and products under its two prominent brands, cult.fit and cult.sport.
Sources informed Moneycontrol that the decision to reduce the workforce was driven by a strategy to diminish the current cash burn, which is estimated to be around Rs 15 crore.
Cult.fit, with a mission to make fitness enjoyable, convenient, and accessible, provides a wide array of offerings, including group workouts, online classes, sports facilities, and personalized fitness solutions at centers and partner gyms throughout the country.
Despite the recent layoffs, Cult.fit has demonstrated financial resilience. Its losses decreased by 20% in the previous fiscal year, concluding in March 2023. Moreover, the company reported a remarkable surge in revenue from operations, reaching Rs 694 crore in FY23 from Rs 216 crore in FY22, according to consolidated financial statements filed with the Registrar of Companies.
The move to streamline operations aligns with Cult.fit’s commitment to sustained financial health and strategic growth. The fitness unicorn remains dedicated to its core mission of making fitness accessible and enjoyable for individuals across the nation.
In response to the current developments, the company provided no official statement.
