Health and wellness startup Cure.fit, which runs the Cult fitness centres across the country, offers health food through Eat.fit and mental health programs through Mind.fit, has decided to close operations in small towns in India and the UAE due to the impact on the business from the COVID-19 pandemic.

The company also said it will downsize its employee base, while the founders will take a 100 percent pay cut.

This comes just months after the startup, founded by Myntra co-founder Mukesh Bansal and former Flipkart executive Ankit Nagori, had raised Rs 832 crore in March this year.

”Given the current pandemic and restrictions across the country, our business is going through significant changes. The lockdown has affected all our business offerings and we do not see the situation improving for quite some time, considering the pandemic spread has affected all the markets we operate in. This unprecedented situation has forced us to close operations in small towns in India and the UAE,” Cure.fit said in a statement.

“While we are doing everything we can to solve for our customers, we also need to adjust to the new realities and manage costs to ensure the long term viability of the business. We have downsized our employee base across markets where we have shut operations and have initiated pay cuts across levels. The founders have taken a 100 percent pay cut, the management team 50 percent and the rest of the staff depending on seniority have a reduction of 20 to 30 percent,” the company added.

Cure,fit said that all employees affected by the downsizing have been given a severance package and an extended health insurance. It has also created a Rs 2 crore fund to support affected employees.

”All employees part of the downsizing have been provided with a significant severance package to help them with the current situation, including extended health insurance for them and their families. Further, we will provide our full assistance in out-placing them in the coming days. We have also created an emergency fund of Rs 2 crore to support affected employees in the coming months.

Sources said the company is now focusing on its digital products rather than the offline centres so as to rationalise costs.

Cure,fit had raised around $110 million in March from investors such as Temasek, Accel Partners, Chiratae Ventures and others.

First Published:May 4, 2020 6:27 PM IST