EN Gz 000 ews: ean Booed fie fd cs Cure.fit clocks Rs 181 Cr revenue in FY19; Gaurav Tyaei expenses surge to Rs 606 Cr 2 inves ncaa rokatonioans $170 (Mn in last round: initiates she a e000 bybeck program soon ote ago fies are In the past two years Curesit has em Indian fitness industry providing an endPryvieny WVU LURAY ALU EXEILIDE WY LIEAIURALE BHI BLOWS. Inthe last iseal the company’s growth blew up fueled by huge investment rounds that the promoters managed to ruse. During this time, the company founded by Mukesh Bansal and ‘Ankit Nagori not only saw its revenue and expenses rise, but also witnessed an improvement in unit economies. According to regulatory filings, Curis operating revenues grew 73X to Rs 181 crore in FYI9 from Rs 24,7 eroe in FY18 and it spent Rs 350.7 crore on purchasing property and iniastructure wo add more feclitis each month in various While the company spent heavily on growing its scale, the growth came at a step price. (Cure.it lost Rs 373.5 crore in FY19, four times as much as the FYIS's figure of Rs 95.4 Almost 70% of operating revenues — Rs 124.5 crore — were generated by offering fitaess ‘nd healthcare services while the sale of food through its cloud kitchens added another Rs 55.2 in FYL9. These cloud kitchen sales grew 10,2X as compared to sales of Rs $4 crore in FYIS, REVENUE BREAKDOWN Exclusive: Unpacking Vedantis ‘eves D round and secondary a —| payment gateway Cashiree onsite clocks profits Zomat claims 2x surge in a revenue in F¥20, cost grew by a Read More abou Fewracke‘The Bengaluru-based company eared another Rs 1.1 erore through platform fees and sale of merchandise. It also added Rs 52 crore to its coffers throtigh non-operating incomes March 2019. (interest & investment gains) during the year ende (Cure.it offers a bouguet of health-related services including Cult.it for workouts, Eat for healthy food, Mind fit for mental health, Care fit for primary health care and fitness gear. ‘The company has been growing agaressively — both organically and through acquisitions —since its inception in 2016, ‘And like any other growth-stage company inthe ecosystem, Curefit burned through a huge pile of cash to achieve this prowth across its verticals. During FV, its total expenditure are 4.6X to Rs 606.5 crore as compared to Rs 131 crore in FYI, Fployee Denefits remained the single biggest cost element forthe company during FY19, growing 3.7X to Rs 178.7 crore from Rs 48 crore in FYI8. Running a chain of gyms and clond kitehens had its real estate costs as well andthe company spent Rs 104.2 crore on rent and facility management in FY19. This expenditure arew SX from Rs 20.8 crores in FYI. During FY19 the company paid for blitzkrieg of advertising and promotions to peneteste the market and inerease its user base. And expenses for the same registered SX growth to reach Rs 108.6 croe in FY19 as compared to only Rs 22 crote in FYB, Purchase of raw material and stockin-trade for kitchens accounted for Rs 35 crore in FY 19, roving almost Gx as compared to Rs 6 crore in FYI8. Legal charges were also a bie addition tothe expense sheet forthe company, ballooning 5.6X from Rs 10 crore in FY18 toRs $6.2 crore in FY19. Importantly, Cue fit also paid out Rs 20 this expense grew 100X from Rs 20 lakh it pa forthe same in FYIS, yeas commissions to selling agents in FY19 and ‘The company spent Rs 4.6 crore on taining and recruitment to manage its growing scale and Rs 8.2 crore on IT & research along with the miscellancous expenditure of Rs 19 crore during the fiscal ended in March 2019, NET OPERATING rome) The snowballing of expenditure was clearly reflected in the eash flows of the company. Is negative cash floors grew 4x to Rs 251 crore in Fy19 from Rs 59.2 crore in FY18 and the end of last fiscal the company’s balance sheet sported outstanding losses of Rs 483.3 crore, Bur there’ also a silver lining as Cure. sit managed to improve its unit expenditure by 37%, It spent Rs 3.35 to generate a single rupee of operating revenue as compared to Rs 5.3 erore it spent for the same in FYISThere was no dearth of capital forthe company to fuel its expense, it taised Rs 995.3 crore through issue of shares and borrovred another Rs 56.5,crore during the fiscal year ended in FVIS. Cure it’s total assets stood at Rs 208.7 crore at the end of FY19,balloonin compared to FY18, The company held around 61% — Rs 738.4 crore of these in fi assets, Rs 100.6 crore in leasehold property and Rs 119 crore in goodwill acquted through sequisitions Apart from Fitness centres, al other verticals collectively generated Rs 58.8 crore in revemtes and fost more than twie the money — around Rs 126 erore in FY. PTT crac fre Preureic) With the introduction of new verticals such as grocery and addition of other health-related services, Cure fits expected to resister high revenue growth inthe ongoing fiseal. The gap between expense and revenue is also likely to shrink further as it Would leverage network effet around its super-app ecosystem,