Bengaluru-based fitness startup CureFit has raised $10 Mn in debt financing from HDFC Bank and Axis Bank. The latest fundraise is part of an earlier round, wherein it secured $3.2 Mn debt funding from Trifecta Capital and Kris Gopalakrishnan-founded Prathithi Investment Trust in August 2017. As per reports, the company is looking to raise additional funding to meet its capex.
Commenting on the development, CureFit co-founder Mukesh Bansal said, “Almost 80% of our capex has been funded through debt, and I expect that even in the future. The attitudes (of banks) have changed significantly. They continue to focus on unit economics and return on capital, but they like the asset-heavy model.”
The less-than two-year-old startup has already raised about $45 million in equity financing, across rounds, from a number of marque venture capital investors, including Accel partners, IDG Ventures Kalaari Capital and UC-RNT Fund, the joint investment vehicle of the University of California and Ratan Tata’s RNT Associates.
This would make it one of the still relatively small number of Indian startups that have raised credit from traditional financial institutions. Surface transport and logistics company Rivigo Services is another company, which owns its fleet of trucks, that has raised Rs 100 crore in credit financing last year.
CureFit has four flagship health and lifestyle products – Cult, the fitness centre chain it acquired in 2016, health food, mental health and wellness and primary care. It has also tied up with a number of hospitals and clinics, to provide a complete integrated health solutions to consumers.
India is the second largest market globally for investments in fitness tech startups, bagging $63 million, last year. US-based companies have received the highest funding with about 64% ($1.5 billion) of total global deal share $2.4 billion since 2013 from VCs. After the US (64%), came in India with 7% deals, Canada with 5%, UK and China with 3% each, and Germany with 2%.