CureFit Receives $10 Million In Debt Funding
CureFit, the health solutions company established by previous senior executives of Flipkart Ankit Nagori and Mukesh Bansal, has lifted almost $10 Million in debt funding. And, a noteworthy fraction of this funding arrives from two of biggest private sector lenders of the country—Axis Bank and HDFC Bank. Going forward the startup aims to lift more to support its capex (capital expenditure).
The startup has already lifted almost $45 Million in equity funding from a lot of marquee venture capital sponsors, comprising IDG Ventures Kalaari Capital, Accel partners, and UC-RNT Fund. UC-RNT Fund is the joint investment arm of Ratan Tata’s RNT Associates and the University of California. The debt financing also comprises the $3 Million it lifted in August 217 from venture debt company Trifecta Capital. It also lifted funds from Prathithi Investment Trust, which is established by previous CEO and cofounder of Infosys, Kris Gopalakrishnan.
“Around 80% of our capex has been financially support via debt, and I hope that even in the upcoming time this will be the same. The viewpoint of banks has altered considerably. They carry on focusing on return on capital and unit economics, but they love the asset-based model,” co-founder of CureFit, Mukesh Bansal, claimed to the media in an interview. As per Bansal, the firm aims to employ the profits from its equity funding rounds towards further marketing and building its tech platforms, while employing credit to fund its Cult fitness centers and other services.
This might make it one of the still comparatively small number of companies in India that have lifted credit from conventional financial organizations. Logistics and surface transport firm Rivigo Services is one more company that possesses its fleet of trucks and has lifted Rs 100 Crore in credit funding in 2017.
CureFit has 4 flagship lifestyle and health products namely mental health, health food, wellness &primary care, and Cult (the fitness hub chain it obtained in 2016). It has also joined hands with a lot of clinics and hospitals, to offer a whole incorporated health solutions to users. As per Bansal, CureFit, which has mostly aimed on Bengaluru, is now getting ready to branch out all over the nation, specifically in the leading 6–8 cities. “In the next 6–9 Months, we will aim very deeply on the Delhi-NCR area. After that, we will shift to Hyderabad, chased by Pune and Mumbai, and then to towns such as Kolkata,” Bansal claimed to the media.