Tata Group to acquire Cult.Fit, to build digital muscle

CIOReviewIndia Team | Thursday, 27 May 2021, 03:46 IST

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Tata Group to acquire Curefit, to build digital muscleAfter picking up majority stakes in online grocery BigBasket and online pharmacy 1mg, the Tata Group is now looking to acquire health and fitness startup Cult.Fit, people aware of the company’s plans stated. The Mumbai-based conglomerate is in talks to bring on board Cult.Fit founder Mukesh Bansal, who may take up a leadership role in Tata’s digital business.

Bansal, who co-founded online fashion retailer Myntra, has been running Cult.Fit for the past five years. He launched the venture with Ankit Nagori, a senior executive from Flipkart.

A person aware of the developments said, “Bansal could possibly get a wider role in Tata’s digital businesses, including those in which it recently picked up majority stake, such as BigBasket and 1mg. The discussions are still not final and the terms may change.”

Curefit, which was recently rebranded to Cult.Fit, has so far raised $418 million and was last valued at around $800 million. It counts Temasek, Accel, Kalaari Capital among its investors.

Landing one of India’s leading entrepreneurs is a significant move for the Tata Group, another source indicated, and will be crucial for its battle with Reliance Industries, Amazon and Walmart-owned Flipkart.

“Bansal’s experience in scaling Myntra from a site selling personalised gifts to one of India’s largest fashion e-commerce players will be vital for Tata as it strings together a digital strategy,” said another person close to the development. Myntra was sold to Flipkart in 2014 for $330 million, after which Bansal joined the e-commerce major and worked closely with the company’s founders, especially Sachin Bansal.

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