General Management Project

Understanding India’s leading health and fitness company Cult.fit

Submitted in partial fulfillment in for the award of the

degree of Master of Management Studies (MMS)
(Under University of Mumbai)

Submitted by: Akanksha Sharma (Roll no. 3)

Under the guidance of Dr. Swati Singh 2023-2025

Vivekanand Education Society Institute of

Management Studies &Research.
 Certificate

This is to certify that the project titled “Understanding India’s leading

health and fitness company Cult.fit” Is successfully completed by Ms.
Akanksha Sharma during semester I in partial fulfillment of a Master’s
degree in Management Studies recognized by the University of Mumbai
for the academic year 2023-25 through

This project work is original and not submitted earlier for the award of
any degree/diploma or associate of any other University/Institution.

Name:
(Signature of Guide)
Date:
 Declaration

I hereby declare that this Project report submitted by me to the is

bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree/diploma certificate
or published any time before.

Name:
(Signature of Student)
Date:
 ACKNOWLEDGEMENT

I would like to express my profound gratitude to my guide Dr. Swati

Singh for her invaluable support, encouragement, supervision, and
usefulsuggestions. Her moral support and continuous guidance enabled
me to complete my work successfully.

Special thanks to The University of Mumbai for giving me an

opportunity to undertake the project “Understanding India’s leading
health and fitness company Cult.fit” Last but not least, I want to
express my gratitude to my family, siblings, and friends for their
invaluable contributions.

I am thankful and indebted to all those who have helped me in the

completion of my project.
Understanding India’s leading health and fitness company Cult.fit
 Index

Sr no. Particular Page no.

1 Executive summary 02

2 Industry Analysis 03

3 Customer profile of the industry 05

4 Major Competitors 06

5 Industry Financials 07

6 Challenges based on Industry 08

7 Government Initiatives 10

8 Genesis of the company 11

9 Vision and Mission 13

10 Business Strategy 14

11 Products and services 16

12 Marketing Strategies 20

13 Financial Analysis 21

14 Challenges faced by the company 23

15 SWOT Analysis 24

16 PESTEL Analysis 26

17 PORTER’S FIVE Analysis 28

18 Conclusion 30

19 References 31

1
 1 Executive summary

Cult.fit is founded by two businessmen, Mukesh Bansal and Ankit Nagori.

When they set out to build the company, there were no major players in health and
fitness industry and was largely unorganized which lacked a definite structure to
differentiate between diverse product and service segments.

After quitting Flipkart, the duo who are both fitness enthusiasts started to gather
information and concluded that no one is paying attention to their health in a
proactive manner.

They found that people are not serious about fitness and visit doctors only when an
emergency happens. Chronic diseases are among the top leading causes of death
in India. This is what motivated Mukesh and Ankit into launching a holistic approach
towards health and create a platform for people where they can acquire knowledge
about fitness, train and stay fit.

By understanding the fitness goals of young urban population they came up with a
solution that would let people train as per their Body mass index (BMI), how much
sleep per day they need, balanced diet they can consume and overall activity daily.

This is how they started Cure.fit now Cult.fit.

Cultfit is the best platform for fitness, nutrition, mental well-being, and health care in
India for many reasons, such as:

1.1. It is holistic: Cult.fit covers all aspects of health and wellness with its four
products: cult.fit, eat.fit, mind.fit, and care.fit. You can get personalized and
comprehensive solutions for your health and wellness goals.

1.2. It is convenient: Cult.fit is available at your fingertips or doorstep. You can

access its products through the app or website, or through the offline centers.
You can also get discounts and offers on its products.

1.3. It is fun: Cult.fit makes health and wellness fun and easy. You can enjoy its
products with music, games, challenges, etc. You can also interact with other
users or experts on the app or website.

1.4. It is effective: Cult.fit shows you the results of its products on your body and
mind. You can also get tips and feedback from the experts on how to improve
your health and wellness.

2
 2 Industry Analysis

The health and fitness industry is a vibrant and ever-evolving domain that
encompasses a wide range of activities, products, and services aimed at promoting
physical well-being and healthy lifestyles. It is pivotal in meeting the growing demand
for improved health and fitness.

From its unorganized and unstructured beginning in the early 90s, the Indian fitness
industry has evolved into a comprehensive ecosystem that includes providers,
consumers, adjacent industries, facilitators as well as the Government. From very
basic gymkhanas to uber-rich and well-equipped gymnasiums, the evolution of the
fitness and wellness industry has been phenomenal. Certain key points to be notes are

• Technological advancements: Wearables, fitness apps, online workout

platforms, and AI-powered personalized wellness solutions are making fitness
more accessible and engaging.

• Diverse workout options: From traditional yoga and Zumba to high-intensity

interval training and boutique fitness studios, the variety caters to different
preferences and needs.

• Rising health awareness: Increasing disposable income, urbanization, and

exposure to global health trends are driving people to prioritize their well-being.

• Market fragmentation: The presence of numerous players, from established

gyms and sports brands to tech startups and local fitness centers, creates a
dynamic and competitive environment, leading to innovation and better
offerings.

• Investor interest: Recognizing the potential, investors are pouring funds into
fitness startups, gym chains, and wellness platforms, further fueling the market's
expansion.

This growth presents not only lucrative opportunities for businesses but also a positive
shift in India's overall health landscape. Wider access to fitness resources can combat
the rising burden of chronic diseases and promote an active, healthy lifestyle across
the population.

2.1. Online home gyms: a pandemic legacy

The rise of online home gyms during the pandemic has fundamentally changed
the fitness landscape. It made fitness accessible to those who couldn't or
wouldn't attend gyms, and its convenience continues to appeal to many.

3
 2.2. Industry shift towards online

Gyms and fitness studios had to adapt to survive during lockdowns, embracing
online platforms and virtual classes. This trend has persisted, offering flexibility
and reaching a wider audience.

2.3. Increased consumer seriousness about fitness

The pandemic served as a wake-up call for many regarding health and well-
being. This newfound seriousness translates into higher engagement with home
workouts, gym memberships, and fitness equipment purchases.

2.4. Booming fitness ecosystem

The surge in demand has led to an explosion of new fitness studios, digital
platforms, and equipment sales. This benefits consumers with more choices and
competitive pricing.

2.5. Market consolidation and innovation

Established players, global companies, and homegrown startups are all vying
for a share of the pie, leading to market consolidation and increased
competition. This fosters innovation and better experiences for consumers.

2.6. Tech-driven fitness: the future is here

The unique combination of fitness and digitization unlocks exciting

possibilities. From AI-powered personalized training to interactive workout
apps, technology is enhancing accessibility and engagement.

2.7. Growing awareness of health benefits

As people become more informed about the positive impact of regular

exercise, they're more likely to prioritize it in their lives. This sustained growth in
awareness bodes well for the future of the industry.

All these factors combined paint a very promising picture for the Indian fitness
industry. There's immense potential for further growth, benefiting both businesses
and consumers, ultimately leading to a healthier and more active population.

4
 3 Customer profile of the industry

With the increase of dual-income households, particularly in urban India, the way
people live and consume various products and services has changed dramatically in
recent years.

India has seen a significant increase in the popularity of health and fitness over the
past few years, with people becoming more aware of the importance of fitness and
healthy living. As a result, the wellness and fitness industry in India has increased,
with new companies and services emerging to meet the growing demand.

The young population between 15 to 34 years of age is the main target group for this
industry. As per the Ministry of Statistics and Programmed Implementation, India's
youth is expected to constitute 34.33 percent of the total population by 2020 – around
440 million.

Today, more and more people are becoming proactive, rather than reactive, about
their health. In fact, owing to the physical and psychological implications of Covid-19,
the importance of overall well-being has grown manifold. This trend is more
prominent amongst the millennial population.

A report by Deloitte India and Retailers Association of India states that at 426 million,
India has the largest millennial population in the world. They form at least 50% of the
Indian workforce and are considered the drivers of consumer market. Further,
millennials are the most health-conscious people in India and spend a sizeable
amount of their time on digital platforms. Availability of digital health and fitness
services accelerates their consumption amongst millennials.

Further a gym could segment their customers into three groups: weight reduction,
muscle building, and cardio training. Each group could receive personalized workout
plans, nutrition advice, and access to specialized equipment that aligns with their
fitness goals.

5
 4 Major Competitors

In 2016 when Cult.fit entered the health and fitness market, there were no major
players in this industry but after the pandemic, people became more aware and serious
about their health so many entrepreneurs saw an opportunity in this industry.

The major companies which are competition to Cult.fit are:

4.1. HealthifyMe is a popular Indian health and fitness app that provides
users with personalized nutrition and fitness advice. The app uses
artificial intelligence (AI) and machine learning (ML) algorithms to provide
customized meal plans, workout routines, and coaching sessions to help
users achieve their health and fitness goals.

4.2. Fittr is an online fitness and wellness platform that provides a range of
services and resources to help people achieve their health and fitness
goals. The platform offers personalized workout plans, nutrition coaching,
and access to a community of like-minded individuals who are all working
towards their fitness goals.

4.3. Talwalkars Better Value Fitness (TBVF) is one of the largest fitness
chains in India, with over 150 fitness centers in more than 80 cities. The
company offers a wide range of fitness services and facilities, including
gym equipment, group fitness classes, personal training, and nutrition
counseling.

Several start-ups in the fitness sector are now targeting urban consumers across
various age groups to market a range of solutions depending on what they need. This
includes everything from wearable fitness devices, digital platforms where people can
sign up for open gym memberships, to even state-of the-art fitness equipment.

With the entry of technology and digitization in the fitness domain, the current structure
of the market is in the midst of a major overhaul, making way for more consolidation in
the market. Access to fitness through the internet and smartphones has been one of
the most critical factors in the surge in demand for health & fitness products and
services.

Mobile app-based services allow people to schedule their training and workout
sessions at the gyms, and the time of day that they prefer.

There is also an increase in strength, energy and stamina that comes with working out
regularly, making fitness and strength training extremely popular among young urban
women and men.

6
 5 Industry Financials

The Indian health and fitness and wellness market is growing at 20 percent per annum
and is expected to touch $12 billion by 2025.

Allied Market Research predicts that by 2027, the global online fitness market will be
worth $59.231 million, having grown at a compound annual growth rate (CAGR) of
33.1% between 2017 and 2027. According to the study’s findings, the proliferation of
augmented and virtual reality training is another major factor fueling the market’s
growth.

Market size and growth:

• India's health and fitness market, including both products and services, is valued
at USD 6.54 billion and is expected to reach USD 10.4 billion by 2025, growing
at a CAGR of 11.1%. (Source: FICCI Wellness Report 2023)
• Similar to the global trend, this growth is driven by rising health
awareness, increasing disposable incomes, and growing adoption of fitness
technology and wearables.
As a result, the fitness industry in India is being revolutionized by cutting-edge
technology like artificial intelligence (AI), machine learning (ML), and intelligent
wearables.

The diverse range of apps catering to different aspects of well-being, combined with
their engaging features does motivate users towards healthier habits.

The multiple revenue streams form fitness apps are:

5.1. In-app purchases (IAP): This flexible model allows offering premium
features like personalized plans, advanced stats, or exclusive
content, attracting users willing to pay for extra value.
5.2. Paid app downloads: While some thrive on a freemium model with
IAPs, others offer a paid app with all features upfront, appealing to users
who prefer one-time purchases and value privacy.
5.3. Advertising revenue: Integrating non-intrusive ads relevant to fitness
and wellness can be a good source of income, but finding the right
balance is crucial to avoid compromising user experience.

It's important to consider both developer and app store revenue here. Developers earn
the majority of IAP and paid app purchases, while stores like Google Play or Apple App
Store take a commission on each transaction.

7
 6 Challenges based on Industry

The various challenges faced by health and fitness industry are

6.1. Customer Retention

In most of the gyms, 50% of people quit gym within the first six months of
subscription and almost 80% of the memberships are not utilized.

6.2. Customer Satisfaction

Only about 18% of gym members enjoy going to gym regularly and remaining
people quit going to gym because they don’t enjoy the gym experience due to
boring exercise schedule, over crowded gym machines, expensive
memberships and gaining no visible results even after regularly going to the
gym.

6.3. Lack of Regulation

Unlike other industries that are tightly regulated to protect consumers, the
fitness industry operates with a considerable degree of autonomy. While there
are organizations and certifications available, the absence of mandatory
regulations allows for inconsistent quality and varying expertise among trainers
and fitness facilities.

6.4. Misleading Marketing Tactics

Deceptive Claims and False Promises is another troubling trend in the fitness
industry.

From fad diets promising rapid weight loss to workout gadgets guaranteeing
sculpted bodies in just minutes a day, the abundance of unsubstantiated claims
creates unrealistic expectations and perpetuates a cycle of disappointment and
frustration for individuals seeking genuine health and fitness solutions.

6.5. Pricing Out the Average Customer

The exorbitant costs associated with gym memberships, fitness classes, and
personal training sessions often price out the average consumer, making it
difficult for them to prioritize their health and well-being.

8
 6.6. Limited Internet Access:

Uneven internet penetration, particularly in rural areas, restricts app accessibility

and usage. Offline functionality and data-lite versions can mitigate this
challenge.

6.7. Lack of Qualified Trainers and Content:

Providing high-quality, culturally relevant fitness content and ensuring the

expertise of virtual trainers can be challenging. Collaborations with qualified
professionals and localized content creation are essential.

6.8. Regulatory Landscape:

Evolving regulations in the healthcare and fitness space can add complexity and
compliance requirements for app developers. Staying updated and adhering to
legal guidelines is crucial.

Despite these challenges, the Indian health and fitness app market holds immense
potential. By addressing these hurdles creatively, building trust with users, and tailoring
offerings to local needs, apps can unlock significant growth opportunities and
contribute to India's overall health and well-being.

9
 7 Government Initiatives

The Indian government recognizes the potential of the health and fitness app market to
promote national well-being. Here are some key initiatives:

7.1. Promoting Digital Health:

National eHealth Mission (NeHM): Aims to create a robust digital health ecosystem
across India, including telemedicine, electronic health records, and healthcare app
integration. This can increase awareness and accessibility of health and fitness apps.

Aarogya Setu App: Developed by the government, this app served as a key tool for
COVID-19 awareness and contact tracing. This established a precedent for leveraging
mobile technology for public health initiatives, potentially paving the way for future
fitness app integrations.

Digital India Initiatives: Government programs like Digital India and Startup India
provide funding, skill development programs, and incubation spaces for innovative
health and fitness app startups, fostering growth in the sector.

7.2. Promoting Sports and Fitness:

Fit India Movement: Launched in 2019, this national campaign aims to make fitness a
part of everyday life across all age groups. This initiative raises awareness of health
and fitness, potentially increasing the user base for relevant apps.

Khelo India Program: Focuses on promoting sports at the grassroots level and
supporting talented athletes. This can create a larger pool of fitness enthusiasts and
potential users of sports-related fitness apps.

Yoga Promotion: The government actively promotes yoga, including launching the
International Day of Yoga and establishing yoga centers. This initiative aligns with the
wellness focus of many fitness apps and can drive user interest.

Overall, the Indian government's multi-pronged approach, ranging from digital health
infrastructure to fitness promotion and addressing user concerns, creates a supportive
environment for the health and fitness app market to thrive.

10
 8 Genesis of the company

Mukesh Bansal and Ankit Nagori leveraged their experience at Myntra and Flipkart to
successfully launch and grow Cult.fit. Their prior understanding of both e-commerce
and consumer insights likely proved invaluable in navigating the health and fitness
market. Here are some potential ways their past roles could have aided their new
venture:

8.1. Myntra Experience (Mukesh Bansal):

Building a brand: Mukesh's experience founding and leading Myntra likely

provided him with valuable skills in brand building, marketing, and
understanding consumer preferences in the online space. This is directly applied
to creating a distinct and attractive identity for Cult.fit.

Navigating online platforms: Having successfully navigated the e-commerce

landscape with Myntra, Mukesh had a deep understanding of online marketing
channels, user acquisition strategies, and building an engaging online presence
for Cult.fit.

Operational expertise: Scaling Myntra from a startup to a leading e-commerce

platform equipped Mukesh with significant operational knowledge, which proved
crucial in managing the growth and expansion of Cult.fit's online platform and
physical centers.

8.2. Flipkart Experience (Ankit Nagori):

Business development and partnerships: As Flipkart's Chief Business

Officer, Ankit has honed his skills in forging strategic partnerships and
deals. This proved to be beneficial in securing partnerships with fitness
studios, trainers, and other relevant stakeholders for Cult.fit.

Supply chain and logistics management: The complex logistics network at

Flipkart likely provided Ankit with valuable experience in managing supply
chains and optimizing operations. This knowledge is applied to efficiently
manage the logistical aspects of Cult.fit's physical centers and online services.

Understanding financial models:

Ankit's expertise in analyzing and managing large-scale business operations at

Flipkart has equipped him with a strong understanding of financial modeling and
resource allocation, crucial for the financial health of Cult.fit.

11
Overall, the combined experience of Mukesh and Ankit from Myntra and Flipkart played
a significant role in the success of Cult.fit. Their prior knowledge and skills allowed
them to effectively navigate the challenges of a new market, build a strong brand, and
establish a thriving business model.

They saw an opportunity in Health and Fitness industry because and at that time this
industry did not have much technological advancements.

They recognized the problem that most people do not enjoy their gym sessions due to
it being overcrowded, doing same workout routine and not getting expected results.

In 2016 Cult.fit started a gym in Bangalore and used unconventional fitness methods.
They did not use the traditional gym machines instead it had mix of martial arts, dance
fitness, cycling, boxing rings, skipping rope, yoga and hiit workouts.

Having cultivated a dedicated following through its successful offline model, Cult.fit's
2017 app launch positioned them as the first mover in the digital fitness space. This
pioneering approach, coupled with the growing demand for accessible workouts, led to
rapid user acquisition and fueled the brand's sustained expansion.

They aim to create an ecosystem of health which includes diet, mental health, physical
health and encouraging its customers to make healthy life style choices by using
technology and sending them reminders from their app and making personalized fitness
plans using AI and machine learning as per each individual’s requirement.

In 2022, Cult.fit acquired Gold Gym, a strategic move that bolstered their diverse
portfolio and paved the way for international expansion. Through this acquisition, they
retain their unwavering focus on delivering three pillars of excellence: online and offline
fitness, personalized diet plans, and comprehensive mental health support.

12
 9 Vision and Mission

Cult.fit's mission is to “make health easy” through their products and services, they
want to enable people to significantly improve their overall health, reduce the risk of
lifestyle diseases and enable a long, disease-free life.

Mission:

9.1. To make health and fitness easy and accessible by offering a seamless
integration of online and offline services.
9.2. To provide best-in-class fitness programs across various
activities, catering to diverse preferences and needs.
9.3. To offer personalized diet and mental wellness support for holistic well-
being.
9.4. To continuously innovate and evolve to meet the changing needs of their
users and stay at the forefront of the health and fitness industry.

Cult.fit's vision is to create a “health ecosystem” which provides one holistic solution
as health is not just about being physical fit, it also includes mental well-being,
balanced diet and keeping track on heath care. They have created business
segments of Eat.fit, Mind.fit and Care.fit to work on this long-term goal.

Vision:

9.5. To be the leading holistic health and fitness platform in India and
beyond, empowering individuals to live healthier, happier, and more
fulfilling lives.
9.6. To democratize access to high-quality health and fitness
experiences, making them convenient, affordable, and engaging for
everyone.
9.7. To build a thriving community around health and
fitness, fostering motivation, support, and connection.

13
 10 Business Strategy

Employing the blue ocean strategy, Cult.fit navigated away from the fiercely
competitive fitness landscape.

They created a distinctive value proposition by seamlessly integrating online and

offline fitness solutions, personalized diet plans, and mental well-being resources, all
at a competitive price.

This differentiation renders traditional competition irrelevant and secures their position
as a pioneer in this newly created market space.

Figure 10.1 Structure of Blue Ocean Strategy

10.1. Raise

They raised the level above the industry standards by firstly hiring specialized trainers
who keep complete track on client’s fitness and designing the workout sessions which
includes activities that are oriented to them like dance sessions, hiit sessions, yoga,
boxing, etc.

Another step they took is to avoid gyms being over crowded, by allowing only a specific
number of people in a session so that the workout experience of customers can fully
utilize the workout session.

They made sure that they are connected to their customers continuously with the help
of their app and at any time a customer can track their fitness level. They also send
reminder notifications about upcoming workout sessions or following the diet.

14
 10.2. Reduce

They reduced the investments which were not required in their gym such as capital
and maintenance cost of traditional gym machines instead investing in punching bags,
punching gloves, dumbbells, yoga mat, yoga blocks etc.

10.3. Eliminate

They eliminated the factors which other competitors were overusing such as offering
personal training and all the costly supplements.

10.4. Creation

Cult.fit created accountability of customers to their fitness goals. They also created
ease of using the gym by installing finger print sensor at the doors and proving a
fitness guide in every session for everyone. They have total plan sessions for each
customer and they are updated by notifications from their app.

Cult.fit revolutionized the fitness scene, not through fierce competition, but by
pioneering a blue ocean. Their innovative blend of online and offline wellness, coupled
with personalized guidance and unwavering customer focus, catapulted them to the top
of India's fitness brands. Led by the dedicated team under CEO Rahul Garg, Cult.fit's
expansion plans seem unstoppable, promising to reshape the industry for years to
come.

15
 11 Products and services

Cult Gyms

They have a gym network of 200 offline gyms centers across the country which offers
comprehensive fitness services to all of its clients.

Evolve Yoga

On September 12, 2023, Cult.fit introduced Evolve Yoga, a brand-new, revolutionary

yoga style based on science that aims to improve mobility and flexibility.

Cult.fit – Partnerships and acquisitions

HRX Gyms

India's top fitness chain, cult.fit, and top sportswear and accessory brand, HRX,
announced a strategic partnership on June 17, 2023, to open HRX Gyms.

Mirchi 95

TRAFFIT is a new project by mirchi and cult.fit in partnership on December, 15, 2022
that attempts to keep people moving and healthy even when they're delayed in traffic.

Gold’s Gym

Through a strategic acquisition of a majority stake in F2 Fun & Fitness India on

February 14 2022, Cult.fit solidified its position as the master franchise partner for
Gold's Gym within the Indian fitness market.

16
Cult.fit has acquired 14 companies to date.

Figure 11.2 Companies acquired by cult.fit

Apart from this they provide access to workouts through the Cult.fit app or website
where a session can be booked and attended online or offline modes. There are also
group classes led by trained coaches.
They also provide three major segments which are:

11.1. Eat.fit

This is the product that offers healthy food delivery for various diets and preferences.
You can choose from different types of food, such as:

Breakfast: These are food items that give you energy and nutrition for the day. They
include items such as oats, idli, paratha, sandwich, etc.

Lunch and Dinner: These are food items that give you balance and satisfaction for the
meal. They include items such as rice, roti, dal, curry, salad, etc.

Snacks: These are food items that give you taste and variety for the snack. They
include items such as chaat, momos, samosa, cake, etc.

17
Beverages: These are food items that give you hydration and refreshment for the drink.
They include items such as juice, smoothie, tea, coffee, etc.

You can access these food items through the Cultfit app or website where you can
order and get them delivered at your doorstep. You can also access these food items
through the offline centers where you can eat them at the cafeteria.

The benefits of eat.fit are:

It is healthy: The food items are made with fresh and natural ingredients. They are also
low in calories, fat, sugar, salt, etc.

It is tasty: The food items are cooked with different spices and flavors. They are also
customized to your palate and preference.

It is convenient: The food items are delivered in hygienic and eco-friendly packaging.
They are also ready to eat or heat.

11.2. Mind.fit

This is the product that offers mental well-being sessions for various needs and moods.
You can choose from different types of sessions, such as:

Meditation: These are sessions that help you relax and calm your mind. They use
different techniques, such as breathing, visualization, mantra, etc.

Yoga Nidra: These are sessions that help you sleep and rest your body. They use
different stages of relaxation, such as awareness, intention, rotation, etc.
Therapy: These are sessions that help you cope and heal from your problems. They
use different methods, such as counseling, coaching, hypnotherapy, etc.

Music: These are sessions that help you enjoy and express your emotions. They use
different genres of music, such as classical, jazz, rock, etc.

You can access these sessions through the Cultfit app or website where you can book
and attend online or offline sessions. You can also access these sessions through the
offline centers where you can join group sessions led by trained experts.

The benefits of mind.fit are:

It is holistic: The sessions cover all aspects of mental well-being, such as stress,
anxiety, depression, happiness, etc.

It is supportive: The sessions provide you with guidance and feedback from the
experts. They also provide you with a community of like-minded people who support
18
and motivate each other.

It is effective: The sessions show you the results of the sessions on your mood and
mindset. You can also get tips and feedback from the experts on how to improve your
mental well-being.

11.3. Care.fit

This is the product that offers health care services for various conditions and concerns.
You can choose from different types of services, such as:

Doctor Consultation: These are services that help you consult with a doctor for your
health issues. You can choose from different specialties, such as general medicine,
gynecology, pediatrics, dermatology, etc.

Diagnostics: These are services that help you get tests and scans for your health
diagnosis. You can choose from different tests and scans, such as blood test, urine
test, x-ray, ultrasound, etc.

Pharmacy: These are services that help you get medicines and supplements for your
health treatment. You can choose from different medicines and supplements, such as
antibiotics, vitamins, probiotics, etc.

Health Checkup: These are services that help you get a comprehensive checkup for
your health status. You can choose from different packages, such as basic, advanced,
premium, etc.

You can access these services through the Cultfit app or website where you can book
and avail online or offline services. You can also access these services through the
offline centers where you can visit and get the services.

The benefits of care.fit are:

It is convenient: The services are available at your fingertips or doorstep. You can book
and avail the services anytime and anywhere.

It is affordable: The services are priced reasonably and transparently. You can also get
discounts and offers on the services.

It has quality: The services are provided by qualified and experienced professionals.
They are also verified and accredited by the authorities.

In this way they are capable of proving one holistic solution for health and fitness goals
of a customer.

19
 12 Marketing Strategies

Cult.fit's Marketing Strategies:

12.1. Social Media Marketing:

Hitting the Right Chord: Cult.fit knows its audience and crafts engaging content that
resonates deeply. They've amassed over 1 million Instagram followers by consistently
delivering valuable information, event invites, creative posts, healthy recipes, customer
reviews, and more. It's like a one-stop shop for everything fitness!

12.2. Offline Marketing:

Beyond the Screen: While embracing digital technologies, Cult.fit doesn't forget the
power of personal connection. They utilize radio channels, featuring their fitness
experts in talk sessions, to reach audiences who prefer traditional media. It's a smart
way to broaden their reach and build trust.

12.3. Influencer Marketing:

Leveraging Trusted Voices: Cult.fit partners with influential figures in the fitness
sphere, tapping into their reach and credibility. Think Hrithik Roshan, Milind
Soman, and other inspiring personalities lending their voices to promote new
offerings. These collaborations add a social proof element and attract a wider
audience. Some of them are listed below :
Hrithik Roshan: He is a Bollywood actor who is known for his movies and fitness. He is
also the brand ambassador and co-owner of Cultfit. He has featured in various
campaigns and videos of Cultfit. He has also designed his own workouts for cult.fit.

Shilpa Shetty Kundra: She is a Bollywood actress who is known for her movies and
yoga. She is also the brand ambassador and co-owner of mind.fit. She has featured in
various campaigns and videos of mind.fit. She has also created her own yoga sessions
for mind.fit.

Tiger Shroff: He is a Bollywood actor who is known for his movies and martial arts. He
is also the brand ambassador and co-owner of cult.fit. He has featured in various
campaigns and videos of cult.fit. He has also performed his own stunts for cult.fit.

Kareena Kapoor Khan: She is a Bollywood actress who is known for her movies and
style. She is also the brand ambassador and co-owner of eat.fit. She has featured in
various campaigns and videos of eat.fit. She has also shared her own diet tips for
eat.fit.

20
 13 Financial Analysis

Cult.fit grew over three-fold during FY23. Moreover, the losses of the company
declined by 20% during the previous fiscal year ending March 2023.

Cult.fit’s revenue from operations surged 3.2X to Rs 694 crore in FY23 from Rs 216
crore in FY22, according to its consolidated financial statements filed with the Registrar
of Companies.

Figure 13.3 Financial FY23

The fitness segment, which includes the business of maintaining & operating fitness
centers and offers a mix of workouts from yoga to boxing, accounted for 64% of the
total operating revenue. Collections from this segment increased 3.1X to Rs 445 crore
in FY23 from Rs 141 crore in FY22.

The rest of the income comes from D2C, healthcare, and designing and developing
sports apparel under the brand name “Cult”.

Employee benefits formed the largest cost center for the company, accounting for 23%
of the overall expenditure. This cost was increased by 17.5% to Rs 343 crore in FY23
from Rs 292 crore in FY22. This includes Rs 86.3 crore as ESOP cost (non-cash).

Its cost of material consumed, advertisement and promotion, information technology,

commission paid to agents, legal and professional fees and other operating overhead
took the overall cost 50.2% to Rs 1493 crore in FY23 from Rs 994 crore in FY22.

21
Key Revenue Streams:

Cult.fit generates revenue through several channels:

13.1. In-app purchases (IAP):

Premium features on the Cult.fit app like personalized plans and

advanced stats contribute significantly to revenue.

13.2. Paid app downloads:

While primarily a freemium model, some specialized apps within the

Cult.fit ecosystem offer paid downloads for specific fitness programs.

13.3. Gym memberships:

Revenue from its growing network of physical fitness centers forms a

major chunk of the income.

13.4. Corporate wellness programs:

Offering customized fitness solutions to companies is another revenue

stream.

13.5. Branded merchandise:

Sales of fitness apparel and other Cult.fit-branded products contribute a

smaller portion of the revenue.

Cult.fit has attracted significant funding from investors, including Amazon, TCV, and
Temasek. The company's latest funding round in December 2023 raised $44.6
million, valuing Cult.fit at over $400 million.

Overall, Cult.fit is a rapidly growing company in the Indian fitness market with a
promising future. However, its profitability remains a concern, and it needs to navigate
competition and ensure user retention to achieve long-term success.

22
 14 Challenges faced by the company

Cult.fit faced major challenges during the COVID-19 pandemic, especially during the
second quarter of 2020 was a tough time for it’s founders Mukesh Bansal and Ankit
Nagori.

After the Government of India announced a nationwide lockdown in March 2020 to

control the outbreak of the COVID-19 pandemic, the market scenario was turbulent for
physical gyms, yoga centers, and wellness centers, with most closing to prevent the
spread of the virus.

Cult.fit started building its freemium app and other digital assets in March to provide
various online fitness and wellness offerings. It brought forward the launch of its
freemium app to April 2020, originally planned to be released in the first quarter of
2021.

Cult.fit was growing fast, but was tasked with sustaining growth in the post-pandemic
phase. Mukesh and his team faced the challenge of converting free subscribers to paid
subscribers.

During the Covid waves, the fitness industry’s recovery in both footfalls and revenue
was capped at 50-60 per cent, because a new Covid wave would hit every few months
and the growth momentum would be upset.

However, after the pandemic the overall fitness industry is almost back to pre-Covid
levels. The recovery would be anywhere between 75 to 85 percent. Further, the
recovery across different segments, between 75 to 90 per cent, is growing month-on-
month basis.

Emerging from the challenges of the COVID-19 pandemic, Cult.fit navigated a crucial
period in 2021-2022. A strategic partnership with Tata Digital, finalized in June 2021,
secured up to $75 million in investment, marking a significant milestone in the
company's recovery and future growth.

23
 15 SWOT ANALYSIS

SWOT Analysis of Cult.fit

15.1. Strengths:

• Strong brand recall and reputation: Cult.fit has quickly established itself as a
leading fitness brand in India, known for its trendy and engaging approach to
fitness.
• Wide variety of offerings: Cult.fit offers a diverse range of workout options, from
traditional yoga and dance classes to high-intensity interval training and
boxing, catering to various preferences and fitness levels.
• Technology-driven platform: Cult.fit leverages its app and online platform
effectively for booking classes, tracking progress, and providing on-demand
workouts, enhancing user experience and accessibility.
• Subscription model: The subscription model provides a steady revenue stream
and fosters customer loyalty while encouraging regular exercise through
automatic renewals.
• Strategic partnerships: Collaborations with popular brands and celebrities, like
HRX by Hrithik Roshan and BeYOU with Katrina Kaif, amplify brand reach and
attract new customers.

15.2. Weaknesses:

• High dependence on urban markets: Cult.fit's presence is primarily concentrated

in metropolitan cities, limiting its reach to a wider Indian audience.
• Price sensitivity of Indian consumers: Cult.fit's premium pricing might exclude
cost-conscious customers, particularly in smaller cities and towns.
• Reliance on trainers: The quality of workout experiences significantly depends
on the trainer's expertise and engagement, creating inconsistencies across
centers.
• Competition from established players: Cult.fit faces stiff competition from
traditional gyms and studios with loyal member bases and competitive pricing.
• Profitability concerns: While showing promising growth, Cult.fit remains to be
profitable, raising concerns about its long-term financial sustainability.

15.3. Opportunities:

• Expand into tier II and III cities: Capitalize on the growing fitness awareness in
smaller towns and cities by offering affordable membership options and
localized workout programs.
• Invest in AI-powered wellness solutions: Develop personalized fitness
plans, nutritional guidance, and health tracking features using AI to gain a
competitive edge and cater to individual needs.
24
 • Strengthen collaboration with corporates: Offer corporate wellness programs
and fitness challenges to tap into the growing demand for workplace health
initiatives.
• Focus on community building: Foster a strong sense of community through
social events, online challenges, and member engagement initiatives to
enhance brand loyalty and retention.
• Explore non-fitness verticals: Leverage its brand equity and data insights to
expand into related areas like healthy meal delivery or mental wellness app
development.

15.4. Threats:

• Economic slowdown: A potential economic downturn could decrease disposable

income and impact consumers' willingness to spend on fitness memberships.
• Increase in competition: The fitness industry is highly competitive, and the entry
of new players with innovative offerings could pose a threat to Cult.fit's market
share.
• Technological disruptions: Advancements in fitness technology, including virtual
reality workouts and home fitness equipment, could challenge the traditional
gym model and impact Cult.fit's business.
• Regulations and policy changes: Government regulations or policy changes
related to fitness centers and online platforms could affect Cult.fit's operations
and profitability.
• Health risks and safety concerns: Maintaining hygiene standards and ensuring
safety during workouts are crucial concerns, and any incidents could damage
Cult.fit's reputation and brand image.

By capitalizing on its strengths, addressing its weaknesses, and proactively navigating

the opportunities and threats, Cult.fit can solidify its position as a leading fitness brand
in India and contribute to a healthier and more active nation.

25
 16 PESTEL ANALYSIS

PESTEL Analysis of Cult.fit:

16.1 Political:

• Government Initiatives: Favorable government policies promoting fitness and

wellness could benefit Cult.fit, like tax breaks or subsidies for fitness
centers. Conversely, stricter regulations on data privacy or fitness standards
could pose challenges.
• Political Stability: A stable political environment fosters consumer confidence
and encourages foreign investment in the fitness sector, benefiting Cult.fit's
expansion plans.
• International Relations: Trade agreements and partnerships with other countries
could open up new markets for Cult.fit's online services or global expansion of
its gym network.

16.2 Economic:

• Economic Growth: Rising disposable incomes in India could lead to increased

spending on fitness services, benefiting Cult.fit's growth. However, economic
downturns could pose challenges in terms of affordability for consumers and
potential investor hesitation.
• Inflation: Rising costs of operating fitness centers and acquiring online users
could impact Cult.fit's profitability. They need to manage costs effectively and
offer value-driven options to remain competitive.
• Taxation Policies: Changes in tax laws or regulations relating to the fitness
industry could impact Cult.fit's financial operations.

16.3 Social:

• Growing Health Awareness: Increasing awareness about the importance of

health and fitness creates a favorable market for Cult.fit's offerings. They can
capitalize on this trend by promoting their holistic wellness approach.
• Changing Lifestyle: Busy lifestyles and increasing urbanization drive demand for
convenient and accessible fitness solutions, aligning well with Cult.fit's hybrid
model of online and offline services.
• Shifting Consumer Preferences: Growing preference for personalized
experiences and niche fitness trends requires Cult.fit to adapt its offerings and
cater to diverse user demands.

16.4 Technological:

• Digital Fitness Boom: The rise of fitness apps, wearables, and AI-powered
workout solutions presents both opportunities and competition for Cult.fit. They
26
 need to leverage technology to enhance their user experience and differentiate
themselves.
• Data Privacy Concerns: Building trust with users concerning data security and
privacy is critical in the digital fitness space. Cult.fit needs to implement robust
data protection measures and maintain transparency.
• Evolving Technologies: Continuous advancements in fitness technology require
Cult.fit to stay updated and integrate new offerings to remain at the forefront of
the industry.

16.5 Environmental:

• Sustainability Concerns: Promoting eco-friendly practices in their operations and

encouraging sustainable fitness choices through their platform can enhance
Cult.fit's brand image and attract environmentally conscious consumers.
• Climate Change: Extreme weather events can impact outdoor fitness activities
and disrupt gym operations.

16.6 Legal:

• Data Protection Laws: Complying with evolving data privacy regulations like
India's Personal Data Protection Bill is crucial for Cult.fit to avoid legal issues
and maintain user trust.
• Consumer Protection Laws: Ensuring fair trade practices and addressing
consumer complaints effectively can protect Cult.fit's reputation and ensure
long-term success.
• Labor Laws: Adhering to labor laws and regulations regarding employee safety
and benefits is important for Cult.fit to maintain a positive work environment and
avoid legal complications.

This PESTEL analysis provides a comprehensive overview of the external factors that
can impact Cult.fit's operations and growth. By understanding and proactively
addressing these factors, Cult.fit can adapt and thrive in the evolving fitness market.

27
 17 PORTER’S FIVE ANALYSIS

Porter's Five Forces Analysis of Cult.fit:

17.1 Threat of New Entrants:

• Moderate: Entering the fitness market requires significant capital investment and
infrastructure development. However, the presence of established players and
the rise of digital alternatives lowers the barrier to entry for niche businesses.
• Cult.fit's Advantage: Building brand recognition, establishing a strong network of
physical centers, and diversifying into areas like mental wellness create barriers
for new entrants.

17.2 Bargaining Power of Suppliers:

• Low: Cult.fit deals with numerous fitness instructors, trainers, and content
creators, diminishing the power of any single supplier. They can also leverage
technology to reduce dependence on specific providers.
• Potential Challenges: Increased demand for qualified fitness professionals could
lead to higher costs or talent shortages.

17.3 Bargaining Power of Buyers:

• Moderate: Indian consumers are price-sensitive, and the availability of free and
low-cost fitness options gives them bargaining power. Cult.fit needs to offer
compelling value propositions and personalized experiences to retain users.
• Cult.fit's Advantage: Providing a hybrid model with online and offline options, a
diverse range of activities, and personalized programs strengthens their position
against budget-conscious buyers.

17.4 Threat of Substitutes:

• High: Numerous substitutes exist for gym memberships and online fitness
programs, including free workout videos, outdoor activities, and home exercise
equipment. Cult.fit needs to constantly innovate and differentiate their offerings.
• Cult.fit's Advantage: Their holistic approach encompassing fitness, diet, and
mental wellness, along with community features and engaging content, sets
them apart from some substitutes.

28
 17.5 Competitive Rivalry:

• High: The fitness market in India is crowded with established players like
Zomato Fitness, CureFit, and numerous startups. Competition is fierce for user
acquisition and retention.
• Cult.fit's Advantages: Their brand recognition, strategic partnerships (like Tata
Digital), diverse service portfolio, and focus on technology-driven convenience
give them a competitive edge.

Overall, Cult.fit faces a competitive and dynamic environment, but their strategic
approach, diversified offerings, and focus on technology and user experience provide
them with a strong position to navigate the challenges and maintain their leading role in
the Indian fitness market.

29
 18. Conclusion

Recognizing the escalating health concerns arising from dietary negligence and
unhealthy lifestyle choices prevalent among India's urban youth, Cult.fit emerged as a
timely solution, offering a comprehensive approach to fitness and wellness.

Cult.fit goes beyond mere satisfaction, aiming for customer delight. They deliver
unexpected value through a diverse service portfolio and foster a vibrant fitness "cult"
that thrives on group activities.

Cult.fit can dramatically increase accessibility by establishing "Cult Gyms" within

corporate parks, college campuses, and even malls, mirroring the ubiquitous presence
of fast-food chains. This strategic placement will put fitness directly in people's path,
reducing travel time and making it a seamless part of their daily routine.

Emulating the strategic location-based success of fast-food chains, making the "Cult
Gyms" as readily available as a quick meal, encouraging spontaneous workouts and
making fitness a natural part of people's daily lives.

Similar to how these chains adapt their menus to local preferences, Cult.fit can
personalize its offerings to cater to the specific needs and demographics of each
location.

Beyond accessibility, Cult.fit can leverage its existing strengths to foster a vibrant
fitness community within these new locations. This could involve organizing community
events, social gatherings, and group challenges within these targeted "Cult Gyms".

Cult.fit's expansion beyond major cities, offering affordable tiers and diverse services,
could be a game-changer for India's health. Imagine millions enjoying on-site gyms at
work, colleges, and malls, boosting activity levels and combatting lifestyle diseases.
This holistic approach to fitness, accessible to all, has the power to reshape the
nation's well-being.

30
 19. References

1. Cult.fit Success Story - How Does This India’s Leading Health and Fitness Company
Make Money? (startuptalky.com)

2. Fitness Industry Statistics 2023-2024 - Growth, Trends & Analysis

(wellnesscreatives.com)

3. As pandemic wanes, Cult.fit sees 75 to 90 per cent business recovery - The Hindu
BusinessLine

4. As pandemic wanes, Cult.fit sees 75 to 90 per cent business recovery - The Hindu
BusinessLine

5. Cult Fit – Fitness Success | Complete Business Model (marketingunicorns.com)

31