Bengaluru based health startup Curefit is in advanced talks to raise fresh funding from its existing investors. People familiar with the matter claim that the startup is looking to raise $25-30 million in the fresh round. Most of these funds will be used to open ‘cult fitness centers’ in new markets where Curefit will be entering pretty soon.
Curefit’s existing investors include high profile venture capital firms like Accel Partners, IDG Ventures and Kalaari Capital. With the latest round of funding, Curefit’s valuation will shoot up to nearly $100 million.
The health startup that currently operates only in Bengaluru is planning to enter Gurgaon by the start of next quarter, sources claim. They further claimed that the firm is looking to expand its food delivery network and also introduce other health-related services in the new market.
Curefit has so far declined to issue any statement on the fund raising news.
Curefit was founded in March 2016 by Mukesh Bansal and Ankit Nagori with an aim to promote healthy lifestyle habits among today’s millennia’s through its app. This startup has been continuously under media’s glare, since both founders boosted a high profile job in their previous stint. Bansal was former CEO and co-founder of fashion e-tailer Myntra, while Nagori was one of the important senior leaders in Flipkart.
Bansal and Nagori’s industry proven credentials has meant that Curefit hardly had to struggle to raise funds. In fact, its $15 million fund raising in July 2016 is widely considered as one of the largest seed funding by an Indian startup. The company has so far managed to raise $20 million through various rounds of funding.
Apparently, the good funding rounds have fuelled this one year old startup’s appetite for acquisition. It has so far acquired three firms, the latest being Bengaluru-based yoga centre brand a1000yoga. The company is equally focused on making growth through organic route. Bansal stated in one of the interviews earlier this year that his firm plans to open 30 Cult fitness centers by the end of the current year.
However, company’s deep cash burn has got many analysts worried. Analysts claim that the startup is trying to do too many disruptive things at a time. Curefit’s knack for disruption and aggression can be easily gauged by the fact that last week it signed Bollywood superstar Hrithik Roshan as its brand ambassador. The deal estimated to be whopping Rs 100 crore is said to be the largest endorsement deal by an Indian startup.
However, Curefit has shrugged off all concerns over cash burns, arguing that its unique business model has already boosted its revenue and cash flow.
