A significant number of employees were reportedly laid off by the Tata Digital-backed fitness firm Curefit, also known for its brands Cultfit, Sugarfit, and Carefit in a recent development.
Latest Round Of Layoffs In Curefit
Interestingly, this development comes at a time when the company aims to streamline operations and achieve profitability by the financial year 2025 (FY25).
According to the company’s spokesperson, “As part of our regular annual operating planning process, we have reduced some redundant positions with the aim of streamlining operations. This is aimed at improving productivity and setting us up for full profitability in FY25.”
The layoffs have affected between 100 to 150 employees as indicated by several Multiple media reports.
Further, the layoffs mainly affected mid to senior-level employees across various divisions of the company, including Sugar.fit, Carefit, and Cultfit, as per the report.
Witnessing Substantial Financial Growth
This latest round of layoffs marks the companies most significant workforce reduction since 2020, then they cut 800 jobs during the pandemic.
Since then, the fitness brand has witnessed substantial financial growth.
During FY23, the company’s operating revenue more than tripled to Rs 694 crore, up from Rs 216 crore in FY22.
Firm’s losses at the same time reduced to 20% to Rs 551 crore in FY23.
The health and fitness company seems to have pivoted to an asset-light, franchise model for its gyms and fitness centers.
Presently, it is focusing on transitioning into an offline-focused gym brand, which is kind of moving away from its initial tech-enabled business model.
IPO In Future
While witnessing all this growth, Curefit seems to also be preparing for a public listing in the coming times.
They are planning for an initial public offering (IPO) once achieving and sustaining profitability for a couple of quarters.
Curefit was founded by Mukesh Bansal and Ankit Nagori in 201.
So far, it has raised over $650 million from investors such as Accel, Temasek, Chiratae, and Kalaari Capital.
When it comes to the company, it was valued at over $1.5 billion in a funding round led by Zomato.
