As the nationwide lockdowns continue, gym and fitness centers across the country remain closed piling up losses for the company that operates them or owns them.
In an attempt to tide over the coronavirus crisis, health and fitness startup Cure.fit recently announced that it has decided to lay off trainers and downsize operations in several tier-2 cities in India.
The company also notified that it has closed its offline operations in the UAE citing the impact of the pandemic on business.
In an official statement, the company said that around 90% of its trainers across its cult.fit gyms business have been moved to a variable pay model to “tide over the crisis.”
“We have downsized our employee base across markets where we have shut operations and have initiated pay cuts across levels. The founders have taken a 100% pay cut, the management team 50% and the rest of the staff, depending on seniority, have a reduction of 20 to 30%,” Cure.fit said in a statement.
However, the company also said that it is setting up a ₹2 crore emergency fund for employees who were affected due to the layoffs, besides offering extended health insurance for employees and their families.
The company is currently focusing on its digital fitness offerings including tele-consultants for providing medical services at home. The company is also trying to further strengthen its online presence.
“We are ramping up our digital fitness offerings to support members stay fit, while tele-consultants have been introduced to provide medical services at home,” the startup said. “We are also doubling down on health food and home delivery of essentials, while maintaining rigorous hygiene standards across all our kitchens.”
The fitness startup has been offering live fitness sessions on its app and website since the country went into lockdown in March.
Cure.fit’s business verticals include food delivery (Eat.fit), physical fitness (Cult.fit), mental wellness (Mind.fit), primary care (Care.fit), and fitness clothing (Cult Sport).
The startup used to operate over 200 cult.fit fitness studios spread across seven cities in India. It offers a subscription-based model for its gym and food delivery products to generate revenue. Many Cure.fit subscribers will now have to shift to digital means to continue using services.
Cure.fit was founded in 2016 by Mukesh Bansal, co-founder of fashion retailer Myntra, and Ankit Nagori former Chief Business Officer of Flipkart.
So far, the startup has raised over $400 million till date from Temasek Holdings, Accel Partners, Kalaari Capital, and Chiratae Ventures India.
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