Table of Contents
- How was CultFit founded?
- Journey
- CultFit’s MOAT
- 1. A "One-Stop-Shop" for Fitness 🏋️♂️
- 2. Unrivalled Brand Partnerships & Tech Integration 🤝💻
- 3. Phygital Strategy 🏋️♂️🤳
- 4. Diversified Revenue Streams 💸
- 5. Community Engagement & Loyalty Program 🏆
- Market Overview
- How Fit is India Getting? 🏋️♂️
- Digital Fitness is Picking Up Steam 📱
- Sports & Fitness Goods Market
- The Reality Check on Gym Culture 🏋️♀️
- Fitness Tech & Trends
- Competitive Landscape
- 1. Substitute Product Offering Competitors
- 2. Feature-level competitors
- How does Cultfit make money?
- Cost Levers
- Market Opportunity
- Challenges
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How was CultFit founded?
Cult Fit, India’s first fitness unicorn, generated a staggering ₹700 crore in revenue in FY23 — but its journey started much smaller.
In 2015, Deepak Poduval and Rishabh Telang, passionate fitness enthusiasts, launched Cult in Bangalore, focused on “Machine-Free Fitness.”
Their gym stood out by using unconventional equipment like rings and boxing bags instead of treadmills.
They started out with only nine trainers. But in just six months, they attracted 200 customers through word-of-mouth, signalling the potential of their unique model. 🤯
In 2016, Mukesh Bansal and Ankit Nagori—leaders from Myntra and Flipkart— who were looking to build a holistic preventive healthcare platform under the brand Cure Fit, acquired Cult for ₹20 Crores ($3M), marking the beginning of Cult Fit’s rapid ascent.
Mukesh had already been a customer of Cult and saw its potential firsthand. This acquisition married Cure Fit’s tech and visionary leadership with Cult’s proven operational expertise, creating the powerhouse now known as Cult Fit.
If you are interested in uncovering business models of internet-first companies, you can check out Spotify Business Model, MakeMyTrip Business Model & other blogs here.
Journey
Cult Fit’s journey exemplifies a strategic playbook driven by acquisitions, vertical integration, and market expansion.
In 2015, the Indian fitness space was already flooded with over 120 fitness startups, but none could break past the ₹10-20 crore revenue barrier.
Cult Fit didn’t just aspire to be another fitness chain — it envisioned building a comprehensive fitness platform that catered to physical fitness, mental health, D2C fitness products, and preventive healthcare.
Cult Fit’s rapid ascent was built on smart acquisitions and expansion. A pivotal moment in their growth came in 2021, acquiring Gold’s Gym’s franchise rights opened the doors to 140+ centers in 90+ cities, expanding their reach into Tier 2 and Tier 3 markets without needing rebranding.
This wasn’t a one-off. Over the years, Cult Fit acquired 20 companies, including Urban Terrain, Fitkit, and RPM Fitness, covering every facet of fitness and wellness — from equipment to tech. Their focus on horizontal acquisitions ensured they could offer everything from physical fitness to mental health solutions.
Today, Cult Fit
- Operates 600+ centers, of which 200+ are company-run.
- Has over 1 lakh active members
- Has over 5 million active app users
- Reported 300% YoY sales growth in FY23
- Made ₹694 crore in revenue (FY23)
- Raised $687 million
- And is valued at $1.5 billion
CultFit’s MOAT
1. A "One-Stop-Shop" for Fitness 🏋️♂️
Cult.fit’s competitive edge comes from its integrated ecosystem.
Think of it like this: You sign up for a workout class, but Cult.fit knows you’re also likely interested in diet plans, workout gear, mental wellness, and healthcare services. They’ve built a platform where all of this is in one place, so you don't need 5 different apps.
This “fitness super app” is what keeps customers loyal.
Competitors like HealthifyMe usually only offer one piece of the puzzle—just fitness, just health advice, or just healthcare services.
It’s like trying to assemble a car with parts from different shops—possible, but a headache.
Cult.fit’s cohesive ecosystem saves you that hassle, drawing more users into its comprehensive health and wellness umbrella.
2. Unrivalled Brand Partnerships & Tech Integration 🤝💻
Cult.fit has mastered the art of partnerships and tech integration. By teaming up with brands like HRX (Hrithik Roshan's fitness brand), they offer exclusive, celebrity-backed workout programs that have mass appeal.
This collaboration isn’t just about slapping a famous name onto a product—it’s about creating content tailored to fitness enthusiasts.
Moreover, their seamless integration with smart devices like Apple Health and Google Fit ensures users can track every movement and calorie, keeping them engaged in a larger health ecosystem.
Competitors? They’re still stuck trying to figure out how to get basic engagement metrics right.
On top of this, Cult.fit has nailed its brand positioning. The brand represents a lifestyle, a cool and aspirational one. Fitness is trendy, wellness is cool, and Cult.fit makes you want to belong.
3. Phygital Strategy 🏋️♂️🤳
Here’s where Cult.fit really flexes its muscles—combining the best of both worlds: physical gyms and digital fitness classes.
See traditional chains like CureFit (before its gym closures) relied on physical studios, but Cult.fit smartly blends online and offline experiences.
Whether you’re sweating it out in a Cult.fit studio or attending a virtual session from your living room, it feels like a part of the same system. It's the kind of hybrid model that doesn’t force users to choose.
With the pandemic pushing fitness online, Cult.fit was quick to scale its digital content, but they didn’t stop there—they continued to develop their physical gyms too.
This omnichannel approach makes them more resilient to market changes compared to fitness chains like Gold’s Gym, which struggled to transition digitally.
4. Diversified Revenue Streams 💸
Cult.fit has mastered the art of building revenue streams across fitness, food, and healthcare.
This trifecta not only increases the average revenue per user (ARPU) but also stabilises the business through seasons when people typically drop fitness habits (like holidays or winter).
While many competitors are stuck relying on subscription revenue for fitness classes, Cult.fit has expanded into the food delivery business (Eat.fit), mental wellness services (Mind.fit), and even diagnostic and healthcare services.
This is strategic: if someone is slacking on workouts, they’re still engaging with other parts of the ecosystem, keeping them tethered to the brand.
This ecosystem approach ensures Cult.fit has multiple touchpoints with its users, making it difficult for a competitor offering just workouts or healthcare to poach customers.
5. Community Engagement & Loyalty Program 🏆
Fitness is often about motivation, and Cult.fit has mastered the art of building a strong community
The app thrives on group fitness, where people feel like they’re part of something bigger—a “cult” of fitness, if you will. This community-driven approach makes working out feel social, motivating people to stick around longer.
Unlike traditional gyms or apps where you might pay a fee and forget about it, Cult.fit pulls you back in with constant incentives and a sense of belonging.
Think of it like FOMO applied to fitness—you don’t want to be the one who misses your class or gets left behind. Cult.fit taps into this need for connection, something that many other platforms don’t offer in the same way.
To add to this, competitors often run on individual engagement, but Cult.fit’s community and sense of belonging keep users coming back, increasing retention rates.
By the way, the depth you see here is just a feeler of the depth we teach at GrowthX 💫
GrowthX is an invite-only club of over 3000 members who are product, marketing, and business leaders, and founders from top internet-first companies like Google, Canva, CRED, Stripe, Netflix, and more 💎
We teach our members how to scale revenues via frameworks that can be applied starting next Monday morning. The GrowthX Membership is built on 3 core pillars:
1. Learning experience: Where you learn the science of revenue-led growth with frameworks actionable the next Monday morning.
2. Curated community: Where you access a safe space for you to soundboard anything that is stressing you at work.
3. Career outcomes: Over 35% of members are founders & are able to hire growth teams to scale revenue for their companies while operators are able to get into breakout leadership roles.
Explore GrowthX Membership 🏆
Market Overview
How Fit is India Getting? 🏋️♂️
The Indian fitness market is growing, but it’s got a long way to go before we reach that six-pack status.
In 2022, the total revenue in the Health & Fitness market hit $24.39 million and is flexing its muscles, expected to hit a solid $36.92M by 2029, growing at a CAGR of 6.05%.
It might seem like a small number, but the potential here is enormous. For comparison, the US generated a whopping $1,993 million in fitness revenue in 2022—so India’s still in its warm-up phase.
Digital Fitness is Picking Up Steam 📱
Our smartphones are becoming as essential to our workouts as a good pair of sneakers.
The Digital Fitness & Well-Being market is projected to rake in a massive $3.50 billion in 2024, with an expected surge to $6.70 billion by 2029 (CAGR of 13.87%).
User penetration is growing from 9.21% in 2024 to an anticipated 12.28% by 2029, proving that the convenience of at-home workouts isn’t going anywhere.
And here's the kicker: the average revenue per user is about $26.38—that’s your yoga pants subscription right there!
Sports & Fitness Goods Market
The Indian sports and fitness goods market hit $2.23 billion in 2023 and is expected to reach a hefty $3.78 billion by 2032 (CAGR of 5.8%).
This means more dumbbells, resistance bands, and cricket bats than ever before!
When it comes to exercise equipment alone, the market is set to hit $29.19 million by 2024 and then leap to $44.28 million by 2029. And it’s not just the pros buying in—by 2029, around 27.2 million users will be getting in on the action.
The Reality Check on Gym Culture 🏋️♀️
Despite the buzz around fitness, only 0.2% of India’s population has a gym membership.
Yep, you read that right.
Compare that to Norway at 22%, the US at 21.2%, and the UK at 15.6%.
The drop-off rate is even more sobering—while 12.5% of all new gym subscriptions happen in January, about 80% quit within five months.
New Year’s resolutions, anyone?
Fitness Tech & Trends
Thanks to wearable tech like smartwatches, India’s urban areas are seeing an 18% penetration in fitness technology by 2024.
Virtual fitness classes and mobile apps are also riding this wave, with app downloads skyrocketing by 65% year-on-year.
Clearly, India's not just sweating it out in gyms but embracing the digital evolution of fitness too.
But what is driving this growth in the fitness market? 🤔
- Health and Wellness Awareness: Post-COVID, fitness awareness has gone mainstream. Over 72% of urban Indians now recognise the benefits of regular exercise. Influencers flexing their #FitnessGoals on Instagram have certainly helped!
- Rising Disposable Income: Indians aren’t just making more money; they’re spending it on fitness. The per capita net national income jumped to ₹1,72,000 in 2024—that’s more disposable income to splurge on gym memberships and home gym setups.
- Urbanization & Lifestyle Shifts: Urban areas are projected to house 40% of India’s population by 2025, with a 15% rise in households engaged in physical activities. Health is the new wealth, especially in bustling cities where fitness studios are popping up like never before.
Competitive Landscape
1. Substitute Product Offering Competitors
👉🏻 Overview of Cult.fit & Competitors
Category | Cult.fit Offering | Competitor Apps | Competitor Gyms | Other Substitutes |
Physical Fitness | 1. Cultpass Elite
2. Cultpass Pro
3. Cultpass Home
4. Cult Gyms | Fitness Apps:
- FITPASS
- Growfitter
- FITTR
- StepSetGo
- Anytime Fitness
- Fitpage
- HealthSetGo | 1. Gym Chains: Solaris, Ozone Fitness, Nitro Bespoke, Talwalkar’s, Crossfit OM, Fluid Fitness
2. Mom & Pop Gyms | Alternate Activity Classes: Yoga, Zumba, Dance Studios (e.g., Zorba Studios, BollyX) |
Weight Loss | Cult Transform | 1. Fitness Apps:
- FITPASS
- Growfitter
- FITTR
- StepSetGo
- Anytime Fitness
- Fitpage
- HealthSetGo
2.Nutrition & Weight loss Apps
- Fitelo
- Healthifyme
- FITTR
- Shyft
- Ultrahuman
- Livofy | 1. Gym Chains: Solaris, Ozone Fitness, Nitro Bespoke, Talwalkar’s, Crossfit OM, Fluid Fitness
2. Mom & Pop Gyms | Dieticians & Weight Loss Centers |
Mental Wellness | Cult mind.fit | Mindfulness Apps:
- Headspace
- Calm
- Wysa.io
- Sadhguru
- Art of Living
- Sarva
- Lissun
- MyDost | Psychologists, Psychiatrists, Counsellors | N/A |
Sports | Cult Play/Fitso | Sports Booking Platforms:
- Hudle
- PlayO
- Khelomore
- Sportido
- sportobuddy
- allsport.in | Standalone sports facilities | N/A |
2. Feature-level competitors
Click on these to find out the detailed comparison analysis for Cult fit’s feature-level competitors 👇
Group Classes 🧑🧑🧒🧒
- What are the products offered by Cult?
Live offline classes with a trainer, can be chosen from 6 types (Yoga, S&C, HRX, Dance, Boxing, Burn)
- Who is the competition?
→ Group classes in F45
→ Group classes in Ozone Fitness
→ Group classes by unorganised individual players (Mom-and-Pop stores)
- What's unique with respect to Cult?
→ Unlimited access to all cult centres and partner gyms.
→ The ability to choose from 6 workouts and plan them according to your feasibility and mood.
→ Pause pack for 60 days.
→ Get 2 sport sessions per month at Cult Play centres.
→ Get 2 free trial classes at the chosen centre before subscribing to a paid plan
Here’s a detailed comparison analysis under group classes 👇
1. Cult Fit
- Done Well ✅
→ Offers a highly motivating group class experience.
→ Excellent infrastructure and hygiene.
→ Best-in-class trainers who help push members to achieve their goals.
→ Cost-efficient, providing good value for the services offered.
- Needs Improvement ❌
→ Might be uncomfortable for introverts in larger group settings (more than 30 people).
→ Pre-set time slots can be restrictive; sometimes, the required time slots are unavailable due to high demand.
- Plans/Charges 💸
→ Approximately ₹1,000 per month if paid annually.
- Customer Support 🛃
→ Detailed FAQ section in the app, option to request a callback or raise a support ticket.
→ On-site support personnel available at Cult centers.
- Customer Segments 🧑🤝🧑
→ Working professionals (25-50), corporates for group memberships, families, fitness enthusiasts, people aiming for weight loss, or seeking general fitness.
2. F45
- Done Well ✅
→ Burns up to 700 calories in 45-minute targeted sessions.
→ Maintains good hygiene standards.
- Needs Improvement ❌
→ Limited options in group classes.
→ Expensive compared to Cult Fit.
- Plans/Charges 💸
→ Around INR 6,000-7,000 per month if paid annually.
- Customer Support 🛃
→ No online support system; issues need to be resolved at the gym directly.
- Customer Segments 🧑🤝🧑
→ Working professionals, fitness enthusiasts, and people aiming for weight loss or overall fitness.
3. Ozone Fitness
- Done Well ✅
→ Offers good infrastructure and hygiene.
→ Provides multiple workout options and amenities like free Wi-Fi.
- Needs Improvement ❌
→ Requires additional effort to plan daily workout schedules.
→ Expensive, with separate fees for classes apart from gym membership.
→ Limited presence; only available in a few metro cities.
- Plans/Charges 💸
→ INR 7,000-8,000 per month annually + an additional fee per class.
- Customer Support 🛃
→ No online support; concerns must be raised directly at the gym.
- Customer Segments 🧑🤝🧑
→ Working professionals, fitness enthusiasts, people seeking weight loss or fitness.
4. Mom-and-Pop Stores
- Done Well ✅
→ More affordable, with flexible payment options.
- Needs Improvement ❌
→ Discoverability is a challenge.
→ Highly unorganized; classes might get canceled or rescheduled.
→ Limited motivation and fewer facilities.
- Plans/Charges 💸
→ INR 200-300 per class.
- Customer Support 🛃
→ No dedicated support; typically managed by the trainer or owner.
- Customer Segments 🧑🤝🧑
→ Homemakers, students, working professionals looking for weight loss or fitness.
Gym Access 💪🏻
- What are the products offered by Cult?
Alongside live offline classes with a trainer, cult also offers users access to multiple gyms in their city. They have tie-ups with some chains like Gold’s Gym and also with multiple local gyms.
- Who is the competition?
→ TalWalkers
→ Ozone Fitness
→ Local/Community Gyms
- What's unique with respect to Cult?
→ Unlimited access to multiple gyms which you can try and choose from. You need not stick to a single gym, you can experiment and settle for the best one per your needs.
→ Pause membership for 45 days.
Here’s a detailed comparison analysis under gym access 👇
1. Cult Fit
- Done Well ✅
→ Provides the flexibility to work out solo on non-group class days.
→ High-quality equipment and good hygiene.
→ Cost-effective for the services offered.
- Needs Improvement ❌
→ No option for a personal trainer.
- Plans/Charges 💸
→ Cultpass ELITE: INR 1,000 per month (annual payment)
→ Cultpass Pro: INR 800 per month (annual payment)
- Customer Support 🛃
→ Detailed FAQs, callback options, support tickets, and on-site personnel.
- Customer Segments 🧑🤝🧑
→ Working professionals (25-50), corporates, families, fitness enthusiasts.
2. Talwalkers
- Done Well ✅
→ Provides good equipment and hygiene.
- Needs Improvement ❌
→ Expensive with low motivational support.
- Plans/Charges 💸
→ INR 6,000-7,000 per month annually.
- Customer Support 🛃
→ No online support; issues need to be resolved in person.
- Customer Segments 🧑🤝🧑
→ Working professionals, fitness enthusiasts.
3. Ozone Fitness
- Done well ✅
→ Good equipment & hygiene
- Needs Improvement ❌
→ Expensive & low motivation
- Plans/Charges 💸
→ INR ~6-7K per month
- Customer Support 🛃
→ No online support system
- Customer Segments 🧑🤝🧑
→ Working professionals, people looking to lose weight, fitness enthusiasts
4. Local/Community Gyms
- Done well ✅
→ Less crowded & Flexible timings
- Needs Improvement ❌
→ No personal trainer & low motivation
→ Procrastination/complacency risk
- Plans/Charges 💸
→ INR ~3-4K per month
- Customer Support 🛃
→ Contact gym owner or manager
- Customer Segments 🧑🤝🧑
→ Home makers, community members, people looking to lose weight, people looking to get fit, fitness enthusiasts
Sports Centres 🏸
- What are the products offered by Cult?
Cult offers users access to play sports currently limited to Swimming, Badminton and Table Tennis at cult sports centres.
- Who is the competition?
→ Playo
→ Local Players (Pools, Badminton courts, Indoor arenas etc)
- What's unique with respect to Cult?
→ Unlimited access to multiple sports at well-maintained centres.
→ Pausing the pack for 45 days
→ One trial class for each sport before purchasing the pack.
Here’s a detailed comparison analysis under sports centers 👇
1. Cult Play
- Done Well ✅
→ Well-maintained centers with good hygiene.
→ Offers multiple sports in one plan.
→ Provides guaranteed play partners for team sports.
- Needs Improvement ❌
→ Limited to only 3 sports.
→ No option to host games or find partners through the app.
- Plans/Charges 💸
→ Cultpass ELITE: INR 1,000 per month (annual payment, 2 classes/month)
→ Cultpass PLAY: INR 1,000 per month (unlimited sports classes)
- Customer Support 🛃
→ Detailed FAQs, callback options, support tickets, and on-site personnel.
- Customer Segments 🧑🤝🧑
→ Working professionals (25-50), sports enthusiasts, families.
2. Playo
- Done Well ✅
→ Wide selection of sports and centers.
→ Offers options to host games and connect with nearby players.
- Needs Improvement ❌
→ Only pay-per-use options, making it expensive for regular use.
→ App experience can be confusing; needs a better UI/UX.
- Plans/Charges 💸
→ Charges range from INR 100-400 per session/hour.
- Customer Support 🛃
→ FAQ and support ticket options in the app.
- Customer Segments 🧑🤝🧑
→ Working professionals, students, sports enthusiasts.
3. Local Players(Pools, Courts, Indoor Arenas)
- Done Well ✅
→ Cost efficient with monthly memberships
- Needs Improvement ❌
→ Unorganised, can be very crowded or absolutely empty without fixed patterns
→ No Apps to book sessions as per convenience
→ Hard to find play partners
- Plans/Charges 💸
→ ~INR 2-3K per month per sport
- Customer Support 🛃
→ No online support system, have to raise concerns to the local centre owner or manager
- Customer Segments 🧑🤝🧑
→ Homemakers, working professionals, students, sports enthusiasts, families
Workout at Home 🧘🏻♀️
- What are the products offered by Cult?
Cult offers users access to unlimited live and recorded sessions among fitness, dance and meditation classes, which can be done from the comfort of your homes. Start the recorded session at your convenience or plan and book a live session.
- Who is the competition?
→ Mobile fitness apps (ASANA Rebel, Nike training club, Adidas Runtastic, Sarva etc)
→ BollyX
- What's unique with respect to Cult?
→ Unlimited access to live and recorded classes.
→ Celebrity Masterclasses
→ Live leaderboard with energy meter
Here’s a detailed comparison analysis under workout at home 👇
1. Cult Home
- Done Well ✅
→ Provides access to both live and recorded sessions.
→ Offers multiple workout options.
- Needs Improvement ❌
→ Curated workout plans could be better.
→ Not as interactive as some other options.
→ Metrics tracking could be improved.
- Plans/Charges 💸
→ Cultpass Home: Approximately INR 140 per month (annual payment).
- Customer Support 🛃
→ Detailed FAQs, callback options, and support tickets.
- Customer Segments 🧑🤝🧑
→ Working professionals (25-50), fitness enthusiasts, people aiming for weight loss or fitness.
2. Fitness Apps (Nike Training Club, Adidas Runtastic, etc.)
- Done Well ✅
→ Provides access to international trainers and curated workout plans.
→ Offers live and recorded classes with progress tracking.
- Needs Improvement ❌
→ Focuses only on 1-2 workout types per app.
→ Limited live sessions; mostly recorded content.
→ Some apps lack personalization.
- Plans/Charges 💸
→ Around INR 300-400 per month if paid annually.
- Customer Support 🛃
→ FAQ and support ticket options available.
- Customer Segments 🧑🤝🧑
→ Working professionals, students, fitness enthusiasts.
3. BollyX
- Done Well ✅
→ Create own dance routines
→ Live and recorded classes
→ Interactive and Fun
- Needs Improvement ❌
→ Only focussed on dance workouts
→ Expensive
- Plans/Charges 💸
→ ~700 per month if paid annually
- Customer Support 🛃
→ Detailed FAQ section in the web app
→ Option to raise a support ticket through the app.
- Customer Segments 🧑🤝🧑
→ Homemakers, working professionals, students, people looking to get fit, dance enthusiasts
Weight Loss Coaching 🏋🏻
- What are the products offered by Cult?
Cult Transform offers users access to a personal transformation coach who assists us in our transformation journey. They provide daily actions, custom diet and workout plans to help us achieve our fitness goals.
- Who is the competition?
→ HealthifyMe/FITTR
→ Dieticians
- What's unique with respect to Cult?
→ Cancel within the first 7 days and get a full refund
→ A short quiz to guide users to check if cult transform is the right fit for them
→ Daily habits and monitoring
Here’s a detailed comparison analysis under weight loss coaching👇
1. Cult Transform
- Done Well ✅
→ Provides an all-in-one coach for meal plans, workout plans, and habit tracking.
→ Full refund option within the first 7 days.
→ Offers daily habits and monitoring.
- Needs Improvement ❌
→ Doesn't cater to specific health conditions.
→ The community feature is not highlighted well on the app.
- Plans/Charges 💸
→ Approximately INR 640 per month if paid annually.
- Customer Support 🛃
→ Detailed FAQs, callback options, and support tickets.
- Customer Segments 🧑🤝🧑
→ Working professionals (25-50), fitness enthusiasts, people aiming for weight loss.
2. HealthifyMe/FITTR
- Done Well ✅
→ Detailed plans catering to various health conditions.
→ Integration with smart scales and CGM trackers.
→ A large community with blogs and motivational stories.
- Needs Improvement ❌
→ The app can be overwhelming with too many options.
→ Requires separate coaches for diet and workout plans.
- Plans/Charges 💸
→ Starting from INR 2,250 per month if paid annually.
- Customer Support 🛃
→ Detailed FAQ and support ticket options available.
- Customer Segments 🧑🤝🧑
→ Working professionals, students, fitness enthusiasts.
3. Dieticians
- Done Well ✅
→ In-person interaction
- Needs Improvement ❌
→ No proper workout plans
→ Very expensive
→ No community, metrics, habit trackers etc leads to lesser motivationThe app can be overwhelming with too many options.
- Plans/Charges 💸
→ ~INR 6000-7000 per month paid monthly
- Customer Support 🛃
→ NA
- Customer Segments 🧑🤝🧑
→ Homemakers, Working professionals, students, people looking to lose weight, people looking to get fit, fitness enthusiasts
The depth you see here is just a feeler of the depth we teach at GrowthX 💫
GrowthX is an invite-only club of over 3000 members who are product, marketing, and business leaders, and founders from top internet-first companies like Google, Canva, CRED, Stripe, Netflix, and more 💎
We teach our members how to scale revenues via frameworks that can be applied starting next Monday morning. The GrowthX Membership is built on 3 core pillars:
1. Learning experience: Where you learn the science of revenue-led growth with frameworks actionable the next Monday morning.
2. Curated community: Where you access a safe space for you to soundboard anything that is stressing you at work.
3. Career outcomes: Over 35% of members are founders & are able to hire growth teams to scale revenue for their companies while operators are able to get into breakout leadership roles.
Explore GrowthX Membership 🏆
How does Cultfit make money?
1. Fitness Centers 🏋️♂️
The core of Cult.fit's empire lies in its fitness centres, which contributed 64% to the total operating revenue, jumping 3.1X from Rs 141 crore in FY22 to Rs 445 crore in FY23.
But here's the twist: Cult.fit owns only about 35% of these centres.
The rest operate under franchise or marketplace models.
This means they earn not just from the gyms they own but also from those they’ve partnered with—a clever way to expand their footprint without shouldering all the operational burdens.
Under this umbrella, several offerings boost their income:
- Cult Memberships & Passes 🏃♀️
Memberships are the lifeblood of any fitness business.
Cult.fit offers various memberships and the popular Cult Pass, giving members access to a mix of workouts—from yoga and boxing to strength training—across multiple centers.
- Cult Sport Arenas ⚽
Beyond traditional gym workouts, Cult.fit taps into the sports enthusiast market by offering access to sports facilities like badminton courts, swimming arenas etc
Users pay to play, turning leisure activities into a revenue stream.
- Cult Transform 🧘♂️
This is their premium, personalised coaching program focused on weight loss and specific fitness goals.
Think of it as having a personal trainer, nutritionist, and wellness coach all rolled into one, guiding you through a transformative journey.
Users pay a premium for this tailored experience, boosting revenue per customer.
2. Cultsport 👟
Launched in 2019, Cultsport is the e-commerce arm selling fitness equipment, apparel, and accessories.
From treadmills and spin bikes to athleisure wear, they’re outfitting India’s fitness enthusiasts.
This vertical is no side hustle—it’s generating 30% of the company’s revenues and is expected to grow by 40-50% year-on-year.
In a few years, it could account for 50% of the revenue.
3. Digital Fitness 📱
Recognizing the shift towards home workouts, especially post-pandemic, Cult.fit offers digital classes and on-demand workout sessions through their app.
Subscriptions to these services allow users to stay fit without stepping into a gym. It’s fitness on your terms, and it adds another stream to their revenue mix.
4. Cult Care - Lab Tests & Healthcare Services 🩺
Venturing into preventive healthcare, Cult Care offers lab tests and health check-ups.
Users can book diagnostic services directly through the app, making health maintenance as convenient as ordering food.
This not only diversifies income but also reinforces their position as a holistic wellness provider.
5. Cult Pass Corporate 🏢
Targeting the corporate sector, Cult.fit provides wellness programs for businesses aiming to keep their employees healthy and happy.
Companies purchase bulk memberships, and employees get access to fitness centers and online classes. It’s a strategic move tapping into corporate budgets while promoting a culture of wellness.
Cost Levers
- Employee Benefits 👥
People are the heartbeat of Cult.fit—from trainers and nutritionists to tech developers and customer support.
In FY23, employee benefits totaled Rs 343 crore, up 17.5% from the previous year. This includes Rs 86.3 crore in ESOPs (non-cash expenses).
Investing in talent is non-negotiable, especially when the brand’s value is closely tied to the quality of service provided.
- Cost of Materials 🧾
This primarily pertains to Cultsport.
Manufacturing fitness equipment and apparel isn't cheap.
Costs include raw materials, production, and logistics. However, as they scale and optimize their supply chain, economies of scale help in managing these expenses.
- Advertising and Promotional Expenses 📣
In a competitive market, staying top-of-mind requires significant marketing spend.
From digital ads and influencer partnerships to promotional events, these costs are essential for customer acquisition and retention.
- Operational Costs of Fitness Centers 🏬
Operating physical centers involves rent, utilities, maintenance, and equipment upgrades.
Even with many centers under franchise models, the owned locations require substantial investment to ensure they meet the brand's premium standards.
- Legal and Professional Fees ⚖️
With aggressive expansion and multiple acquisitions—like taking over the India franchise of Gold’s Gym—legal and professional fees are a significant expense.
These costs cover due diligence, compliance, and integration processes essential for smooth operations.
- Information Technology Infrastructure 💻
As a tech-enabled fitness platform, investing in IT is crucial. This includes app development, platform maintenance, cybersecurity, and implementing AI for personalized user experiences.
Market Opportunity
1. Home Fitness Equipment Rental 💪🏻
The home fitness market is booming, and Cult.fit could unlock a huge potential with its subscription-based equipment rental model.
Renting out fitness gear like treadmills or exercise bikes taps into the mindset of customers who want the convenience of home workouts without heavy investments.
As hybrid work setups grow, more people are ditching gym memberships for home fitness setups, especially those who lack space or don't want to commit to expensive purchases.
It also offers flexibility—renting equipment on a monthly or quarterly basis becomes more appealing than owning for short-term fitness goals or temporary rehab needs.
For Cult.fit, this translates into a consistent revenue stream without needing massive upfront sales, plus they can lock customers into their broader ecosystem (online classes, personal training, etc.) by bundling rental plans with their other services.
2. Healthy Aging Marketplace 💊
With India’s nutritional supplements market expected to hit $35.29 billion in 2023, there’s massive room for growth in catering to older demographics.
Cult.fit can position itself as a leader in the healthy aging vertical by collaborating with established health brands to offer a curated selection of age-specific products—think supplements, skincare etc
Given India’s rapidly aging population—projected to double by 2050—this could become a major pillar of growth.
3. Senior Fitness and Wellness Programs:
With 149 million people over the age of 60 in India as of 2022, Cult.fit can tap into a fast-growing demographic that’s only set to expand further.
Specialized senior fitness programs focusing on low-impact exercises, mobility, and balance could help Cult.fit differentiate its offerings.
This could also feed into its healthy aging ecosystem, creating holistic packages that combine physical training with nutrition plans for better aging outcomes.
By positioning itself as a trusted brand in this space, Cult.fit could capture a demographic that is often ignored in mainstream fitness but has an increasing need for tailored services.
Not only does this create a new revenue stream, but it also solidifies Cult.fit’s image as a full-spectrum wellness brand, not just a gym operator.
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Challenges
1. High Operational Costs in India 🫤
Running fitness centers in India isn't cheap.
Cult.fit faces heavy operational expenses, including rising rent, equipment upkeep, and staffing costs.
According to CII reports, these costs are increasing by 12% annually, driven by inflation and soaring property prices, making it hard for Cult.fit to expand aggressively into Tier 2 and Tier 3 cities.
The return on investment (ROI) in these smaller cities may be slow, and setting up a full-fledged fitness center in areas with less purchasing power could stretch their balance sheet.
Moreover, in underperforming markets or during downturns, fixed costs like rent, utilities, and employee salaries could eat into Cult.fit’s profits, making it harder to hit profitability targets, especially if memberships dip.
2. Low Gym Membership Adoption Rate 🔻
India’s gym membership penetration rate sits at a dismal 0.2-0.3%, much lower than more developed markets.
This cultural gap is one of Cult.fit’s biggest hurdles.
A significant chunk of the population does not prioritize spending on fitness, which means Cult.fit has to work extra hard to convert casual fitness enthusiasts into paying customers.
Changing this mindset requires major investments in education, marketing, and designing fitness solutions that appeal to first-timers or those hesitant to commit to gym memberships.
3. Franchise Management ⚒️
While Cult.fit has opted to scale through franchising, this approach isn't without its pitfalls.
Maintaining quality control across franchise locations can be tricky. If franchise owners cut corners on staffing or operations, it could harm the overall customer experience, leading to brand dilution.
Franchises might also struggle with operational inefficiencies, and there's always a risk of misalignment with Cult.fit’s core values or training protocols, which could damage the brand’s reputation if left unchecked.
Additionally, ensuring profitability for franchise partners while maintaining uniform pricing and service standards across diverse markets will be a balancing act for Cult.fit as they continue expanding.
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