CureFit has been one of the most popular fitness companies in the Indian market for quite some time. Founded in 2016 by Mukesh Bansal and Ankit Nagori, It is the first startup which has integrated the concept of fitness and healthcare. Not just a mobile application, CureFit has established a chain of gyms, yoga centers, and dietary consultation centers all over the country. Today, the company has a presence in almost all major Indian cities and has raised over $400 million in funding from investors all over the world.
The History of CureFit
CureFit was started by two well-known entrepreneurs in the Indian startup world, Mukesh Bansal and Ankit Nagori. Mukesh Bansal, who was the founder of Myntra, sold his company to Flipkart for around $300 million. Ankit Nagori was one of the key employees at Flipkart, where he served as the chief business officer before resigning to start out on his own. Both of them had an extensive background in the e-commerce industry, and they saw a significant opportunity in the fitness industry, specifically in bringing in a tech-based, self-care approach to health and wellness.
What is CureFit Into?
CureFit’s business model is unique; it is a one-stop destination for anything related to fitness and well-being. It offers a range of services starting from gym sessions, yoga classes to on-demand workouts, personalized diet plans, and mental wellness. The company’s flagship app, CultFit, offers an array of digital workouts, including guided meditation, dance fitness, and much more. The foods and healthy snacks that they offer are made by their in-house food delivery brand, Eat.fit.
Funding and Investors in CureFit
CureFit has actively raised funds for its growth, and its investors include Sequoia Capital, Accel, Falcon Edge Capital, Chiratae Ventures, and others. The company’s primary source of funding comes from private equity and venture capital firms, which allowed it to raise over $400 million in total funding. The latest funding was a Series D round, which closed at around $404 million in 2019.
How CureFit is Performing?
CureFit was doing quite well until the advent of COVID-19. The pandemic has caused an unprecedented halt to almost all businesses globally. Curefit is also not an exception. As part of their diversification plans, they had recently acquired digital coaching startup Onyx, and the same was expected to help them address the challenge posed by COVID-19. However, unfortunately, it wasn’t enough to save the company from layoffs and the overall impact of the global situation.
Layoffs at CureFit
CureFit has had to let go of a considerable number of employees owing to the pandemic. With lockdowns creating a seismic impact on industries across the globe, businesses have resorted to cost-cutting measures to stay afloat. While there may have been several reasons why the company let go of its employees, it is essential to understand what led up to the decision and the extent of the layoffs.
According to reports by various news sources, CureFit laid off around 800 employees on April 5th, 2020. This decision was taken due to large-scale revenue losses arising from the current pandemic. The company is estimated to have let go of around 16% of its workforce. The layoffs were dispersed across the country, and the company had to shut down around 50% of its gym centers temporarily. Reports have also suggested that the company is thinking of moving to an all-digital format to tide over its losses.
The Company’s Stand on Layoffs
The company hasn’t made a public statement on the layoffs yet. Mukesh Bansal, the co-founder of CureFit, in an interview with a leading Indian news channel, had stated that the company had temporarily shut down around 50% of its gym centers due to the ongoing pandemic. He had also said that the company is trying to drive demand through its digital channels, which includes the mobile apps, coaching, and nutrition products. Given the company’s track record on laying off employees, it is expected that the company may provide some reassurances to the employees who are still with the company.
In conclusion, the layoffs at CureFit have been an unfortunate event that has impacted several of its employees and stakeholders. The pandemic has affected not just CureFit but numerous other businesses as well. With the world trying to cope up with the situation, businesses are looking for innovative ways to adapt and move forward. CureFit, too, may find ways to bounce back. For now, we hope that the company does its best to support its employees and navigate through the tough times ahead.