Highlights
Growth Challenges for Fittr
Fitness technology startup Fittr has faced hurdles in its growth trajectory, with revenue plateauing over the last three years. Nevertheless, the company backed by Rainmatter Capital has substantially reduced its losses in the most recent fiscal year.
Financial Performance Overview
Fittr’s operational revenue experienced a slight decline of 3%, totaling Rs 85 crore in FY24, down from Rs 87.5 crore in FY23, based on its consolidated financial statement from the Registrar of Companies (RoC).
About Fittr
Founded by Jitendra Chouksey, Sonal Singh, Jyoti Dabas, Rohit Chattopadhyay, and Bala Krishna Reddy, Fittr operates as a community-focused health and fitness online marketplace. The platform develops tailored workout plans considering the following factors:
- Fitness goals
- Available equipment
- Time constraints
- Preferred exercise styles
Revenue Breakdown
Revenue from online fitness and wellness services accounted for the majority, reaching Rs 80 crore, although this reflects a 4.42% decrease from Rs 83.7 crore in FY23. New income streams, including smart ring sales, contributed Rs 80 lakh. Additionally, academic fees and other revenue sources generated Rs 2.8 crore and Rs 1.4 crore, respectively.
Fittr also earned an extra Rs 1.3 crore from non-operating revenue, bringing total revenue to Rs 86.3 crore in FY24.
Expense Management
Total expenses for the company saw a considerable reduction of 26%, down to Rs 97 crore in FY24 from Rs 131 crore in FY23. Key factors contributing to this decline included:
- A 36.2% reduction in employee benefits, amounting to Rs 20.8 crore
- A 65.8% decrease in advertising costs, totalling Rs 8.4 crore
- A 30% cut in other overhead expenses, equating to Rs 13.5 crore
Meanwhile, expenditure on consultants and study materials, which represents the largest cost component, remained unchanged at Rs 54.3 crore.
Losses and Financial Ratios
As a result of effective cost management, Fittr’s losses decreased significantly by 73.5%, totalling Rs 11 crore in FY24 compared to Rs 41.5 crore in FY23. The company’s Return on Capital Employed (ROCE) and EBITDA margin were recorded at -38.89% and -10.66%, respectively. The expense-to-earning ratio stood at Rs 1.14.
Current Assets and Funding
As of March 2024, Fittr reported current assets amounting to Rs 46.5 crore, which includes Rs 27.8 crore in cash and bank balances.
Fittr has raised a total of $17 million in funding to date, comprising a $3.5 million round led by Zerodha-backed venture fund Rainmatter. Other significant investors include Surge, Dream Capital (now defunct), and Elysian Park.
