Health and fitness platform Cult.fit has acquired a majority stake in F2 Fun & Fitness India Pvt Ltd, becoming Gold’s Gym’s lead franchise partner in India.
Cult.fit, operated by Cure.fit Healthcare Pvt Ltd, recently acquired RPM fitness, Fitkit, Onefitplus and Urban Terrain. The company also closed its $150 Mn Series F Round led by Zomato to enter the coveted Unicorn club in November last year.
Cult.fit will focus on independent growth of the Gold’s Gym brand, scaling revenue from existing Gold’s Gym centers and enabling further expansion using the franchise model, the company said in a press release.
In addition to India, Cult.fit aims to expand the Gold’s Gym brand in key geographies such as Sri Lanka, Bangladesh, Maldives, Nepal, and Bhutan.
Cult.fit claims to operate more than 350 owned and partner centers in more than 25 cities in India. This strategic partnership with Gold’s Gym should help Cult.fit significantly expand its footprint and strengthen its position across the country.
On the other hand, Gold Gym claims that it has more than 140 outlets in more than 90 cities with multiple long-term franchise partnerships in metropolitan, Tier II, III and IV markets.
Offline gyms have been some of the most prominent casualties in recent years due to the covid pandemic. This can be gauged by the fact that Gold’s Gym’s operating income saw a 58% decline to Rs 20.09 crore in FY21 from Rs 47.74 crore in FY20. During the period , Gold’s Gym’s expenses also fell by 36% to Rs 28.72 crore from Rs 45.17 crore in the previous financial year, the company’s regulatory filings with the MCA show.
The company posted a loss of Rs 39 lakhs in FY21 from Rs 1.19 crore profit in FY20.
Tata Digital, a subsidiary of Tata Sons Private Ltd, had signed a strategic agreement to invest up to $75 million in Cure.fit in June of last year. As part of the deal, Mukesh Bansal, co-founder and CEO of Cure.fit, joined Tata Digital as Chairman and continued his leadership role at the Bangalore-based company.
With the end of the pandemic finally in sight, acquisition opportunities should be plentiful for stronger hands like Cult.fit, so we wouldn’t be at all surprised to see more such announcements in the coming months.
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