Fittr FY22 Revenue Reaches Rs 90 Cr, but Faces Losses
- ByStartupStory | April 13, 2023
Fittr, the digital fitness and nutrition community platform, experienced significant revenue growth in FY22, with a 53.5% increase in operations revenue. However, the company also incurred sizable losses due to an eight-fold rise in advertising costs. Fittr, backed by Sequoia and Dream Capital, offers personalized fitness and wellness services, accounting for 92.9% of its total collections. Despite the revenue growth, increased advertising expenses resulted in losses for the company in FY22, according to its financial statements filed with the Registrar of Companies (RoC).
Fittr, the digital fitness and nutrition community platform, saw an 11% increase in revenue from coaching services, reaching Rs 6.24 crore in FY22. The company also offers short-term workshops on topics such as pregnancy, diet planning, and exercise science, contributing Rs 12 lakhs to its overall income. Additionally, around 41.2% of the company’s operating revenue came from the US as export income, with other income of Rs 78 lakhs from interest on fixed deposits in FY22. However, Fittr’s overall expenditure increased by 59.6% to Rs 50.48 crore in FY22, with payment to fitness consultants accounting for 43.7% of the costs.
Fittr, the digital fitness and nutrition community platform, saw a significant increase in expenses during FY22, with employee benefits expenses jumping 2X to Rs 26.15 crore and advertising costs ballooning over 8X to Rs 18.52 crore. The company also incurred additional expenses of Rs 5.6 crore and Rs 4.71 crore towards legal-professional fees and technical charges, pushing the overall expenditure up by 2.09X to Rs 115.55 crore in FY22. As a result, Fittr posted losses of Rs 25.41 crore in FY22, compared to a profit of Rs 1.48 crore in FY21. The company’s cash flow was also negatively impacted, with a cash burn of Rs 20.49 crore. Furthermore, Fittr’s ROCE and EBITDA margin deteriorated to -46.52% and -26.74% in FY22, respectively, indicating financial challenges. On a unit level, the company spent Rs 1.3 to earn a single rupee, further highlighting the financial strain faced by the firm in FY22. Fittr Secures Funding from Sequoia’s Surge Accelerator, Raises $11.5 Million in 2021 from Dream Capital and Elysian Park Ventures, Competes with HealthifyMe, FirBudd, Cult.fit, and Others
Fittr, a Pune-based firm operating in a highly fragmented and unorganized category, has successfully scaled up its business. Its significant revenue share from the US market is promising, as it is expected to result in higher and more stable margins. However, with monthly fees for its top-selling options, such as personal fitness, breaching the five-figure mark, Fittr may face the risk of users migrating to direct deals with trainers for better pricing. To maintain a healthy balance sheet, Fittr needs to continuously evaluate its proposition and control customer acquisition costs.
In addition to its existing offerings, Fittr has introduced the Fittr Hart smart ring, which allows users to track their health. This move marks Fittr’s entry into the hardware side of the business. However, this could also increase the company’s dependence on further rounds of funding, which may be challenging in a tough funding environment, similar to its most strenuous workouts.
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