Cult.fit bets on franchises, low-cost gyms for expansion

Nearly 400 of the company’s 700-plus centres are now franchise-operated, with about two-thirds of all new openings coming through franchisees, CEO Naresh Krishnaswamy told Fe. Krishnaswamy, who took over from founder Mukesh Bansal in FY24, said this model will remain central to scaling the network.

The company’s flagship remains its hybrid format, typically spanning 6,500–9,000 sq ft, combining gym equipment, group workout studios and personal training. Cult Neo, by contrast, is a stripped-down gym-only format of 7,000–8,000 sq ft, designed to operate at a lower price point while handling higher footfall. The company has scaled Neo to about 40 locations since its launch around 18 months ago.

“If you look at global parallels, it is these high-value, low-price gyms where the entry fee is quite low and the gym can accommodate many people. Those are the kind of formats that accelerate adoption,” Krishnaswamy said. India’s fitness penetration remains under 1%, compared with over 20% in the US, he added.

Operations across about 50 cities

Cult.fit operates across about 50 cities, with over 80% of centres concentrated in the top four or five markets. The company sees headroom to expand to around 100 cities over the next five to six years, with growth increasingly targeting non-metro markets. Cult Neo will anchor that push.

The company’s adjacent offering, Cult Play, which provides access to sports facilities such as badminton courts, swimming pools and tennis courts through partner venues, is live in six cities. However, Krishnaswamy indicated limited near-term expansion. “Our core focus is still on fitness and gyms for the time being,” he said.

At-home fitness, which saw traction during the pandemic, is no longer a priority. “Wanting to work out at home is something that I think has gone for good,” he said, adding that the company is instead focusing on convenience-led formats such as gyms in corporate tech parks and residential complexes.

Cult.fit crosses 1 million live active paid subscribers.

Cult.fit has crossed 1 million live active paid subscribers. Around 50% of subscribers purchase additional services beyond their base membership, while renewal rates are about 50%. The company also generates revenue through in-centre brand advertising and product sampling. About 70–75% of gym vertical revenue comes from the Cult.fit brand, with the rest from properties such as Gold’s Gym and Fitness First.

Beyond gyms, the company has built a products business spanning equipment, apparel, footwear and accessories, contributing about one-third of overall revenue. These are sold through e-commerce platforms, its own website and 30 exclusive brand outlets across Delhi, Hyderabad and Bengaluru. Krishnaswamy said the company plans to scale this network to about 300 outlets over the next four to five years.