Cult.fit Secures $10 Million in Funding Led by Valecha Investments

Cult.fit, the health and wellness platform backed by Tata Digital, has received a significant boost with $10.2 million in funding. This investment marks a resurgence for the Bengaluru-based company after a two-year hiatus in funding activities.

The extended Series F round saw Valecha Investments taking the lead, contributing Rs 36.36 crore, followed by Gul Advani with Rs 28.26 crore. Additional investments came from various entities and individuals, including Extreme Brands LLP, L&K Wellness Services, and notable investors such as Surendra Kedia and Sangeeta Mansharmani.

Cult.Fit Funding

Prior to this, Cult.fit raised nearly Rs 300 crore in the last quarter of FY22 from investors like Accel, IIFL, and Valecha Investments. Despite this substantial investment, it didn't grab much attention in the media. The company has amassed over $670 million in total funding from a diverse group of investors including Zomato, Temasek, and Kalaari Capital. Its latest valuation stands at Rs 12,400 crore according to startup intelligence platform TheKredible.

Accel Partners holds the largest stake in Cult.fit post-allotment of this funding round, with 17.25% shares. Founder and CEO Mukesh Bansal maintains a 10.5% stake in the company.

Cult.fit attained unicorn status in November 2021 when Zomato acquired a 6.4% stake in a $100 million deal. However, the company recently underwent restructuring, letting go of approximately 150 employees in a bid to enhance productivity and achieve profitability by FY25.

Despite the challenges, Cult.fit has shown promising financial growth. Its revenue from operations soared to Rs 694 crore in FY23 from Rs 216 crore in FY22, marking a 3.2X increase. Additionally, the company managed to reduce losses by 20%, reaching Rs 551 crore in FY23 (excluding exceptional items or non-cash expenses) compared to Rs 688 crore in FY22.

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