For years, Cult.fit’s focus was primarily on gym memberships, but the Indian fitness startup is now evolving its business model to incorporate a broader retail strategy. Founded in 2016 by former Flipkart executives Mukesh Bansal and Ankit Nagori, Cult.fit aims to transform into a comprehensive fitness retail brand akin to the Decathlon of India. This strategic pivot is part of Cult.fit’s intensified efforts to reach profitability, as the company diversifies into selling apparel, footwear, gym equipment, and bicycles.
### Converting Gym Goers Into Shoppers
While Cult.fit’s emphasis on product sales might appear as a significant shift, the company has been laying the groundwork for this transition over the past five years. It began its foray into retail with apparel in 2020 and gradually expanded into footwear and home fitness equipment. By 2025, product sales accounted for approximately 30% of the company’s overall revenue, a substantial increase from ₹64.2 crore in FY22 to ₹326.4 crore in FY25.
The CEO, Naresh Krishnaswamy, highlighted that the growth in product sales is a result of strategic category expansion. Cult.fit has maintained an asset-light model by outsourcing manufacturing while retaining product design and material selection in-house. This approach has allowed the company to quickly adapt and introduce new products, such as handheld recovery massagers and fitness accessories like gym bags and yoga mats, which have gained traction in the market.
### Navigating the Competitive Fitness Market
Cult.fit’s expansion into retail comes at a time when the Indian fitness and wellness market is experiencing significant growth. The sector is expected to reach $12 billion by 2025, driven by increasing health awareness and a growing middle class with disposable income. Cult.fit’s entry into the retail space pits it against established players like Decathlon and emerging local brands that are also capitalizing on this trend.
The company’s diversification strategy also includes expanding its offline retail presence and launching Cult Neo, an affordable gym format, to attract a broader customer base. This multi-channel approach not only enhances Cult.fit’s market reach but also strengthens its brand presence, making it more resilient against market fluctuations and competitive pressures.
### Implications for India’s Startup Ecosystem
Cult.fit’s retail expansion reflects a broader trend among Indian startups focusing on diversification to achieve profitability. The ability to create multiple revenue streams is becoming increasingly vital in the competitive startup landscape, where investors are keen on sustainable growth over rapid, unsustainable scaling. By tapping into the retail segment, Cult.fit is setting an example for other startups in the fitness domain and beyond, highlighting the importance of a diversified business model.
This strategic shift also signals a potential wave of consolidation in the fitness industry as startups look to merge retail and service offerings to create comprehensive health and wellness ecosystems. Cult.fit’s ability to leverage its existing customer base and brand loyalty to drive product sales could inspire similar strategies across other sectors.
Looking ahead, Cult.fit’s continued success in the retail domain will likely depend on its ability to innovate and respond to consumer demands swiftly. For investors and stakeholders in the Indian startup ecosystem, the company’s performance in the retail segment will be a critical indicator of its profitability trajectory. Watching how Cult.fit balances its core services with its growing retail operations will provide valuable insights into the scalability of hybrid business models in the fitness industry.
