Cult.fit promotes Naresh Krishnaswamy as CEO, Mukesh Bansal becomes chairman

Cult.fit, the fitness tech firm, has promoted Naresh Krishnaswamy, one of its co-founders, to the role of Chief Executive Officer, succeeding long-serving CEO Mukesh Bansal, who now transitions to the position of Executive Chairman within the company.

Krishnaswamy had unofficially assumed the CEO position last October, as per his LinkedIn profile, although the company had not made a formal announcement at the time. A spokesperson for Cult.fit has confirmed this recent development.

Before his CEO appointment, Krishnaswamy held various roles within Cult.fit, including Head of Finance for over three years and overseeing growth and business divisions for more than two and a half years. Prior to joining Cult.fit, he had a tenure of nearly six years at the e-commerce giant Myntra.

Bansal's shift to the role of Executive Chairman comes after Tata Digital's initial investment of $75 million in Cult.fit in June 2021, which saw Bansal join Tata Digital as President while still maintaining his position at Cult.fit.

Recently, Cult.fit concluded an extended Series F funding round, securing approximately $10.2 million, with Valecha Investments leading the investment. According to reports, Bansal retains a 10.5% stake in the company.

Earlier this year, Cult.fit announced a workforce reduction of around 150 employees, citing it as part of its regular annual operational planning. This move follows a larger downsizing during the Covid-19 pandemic, where approximately 800 employees were laid off, and several fitness centers were permanently closed across the country.

In November 2021, Cult.fit attained unicorn status following Zomato's acquisition of a 6.4% stake in the company for $100 million.

Financially, Cult.fit saw a substantial revenue increase in FY23, reaching Rs 694 crore from Rs 216 crore in the previous fiscal year. Additionally, losses decreased by 20% to Rs 551 crore (excluding exceptional items or non-cash expenses) in FY23 compared to FY22.

As of now, Cult.fit has yet to disclose its financial performance for FY24.