Fitternity has built a tech-enabled platform combining marketplace and the subscription model for fitness services. The platform helps people discover the best of health-based destinations. It has tied up with gyms and health
clubs for the purpose.
The start-up is banking a lot on its latest offering OnePass — an access pass that provides users unlimited access to its partner facilities. Its basic 15-day plan is priced at Rs 2,500.
Explaining the revenue model, Vora, co-founder and COO, said the company follows the simple "buy and sell" formula. Fitternity buys slots from gyms and fitness centres, and sells them to its customers at a margin.
The co-founder said Fitternity is clocking $10 million in annual revenues and aims to grow 10 times to $100 million in the next 24-36 months.
Further, the company has either entered or is planning to venture into verticals such as gym-related merchandise, nutrition solutions and gym management software to diversify income streams. The company is already working with corporates to implement employee-wellbeing initiatives, by replacing reimbursements and inconvenient annual memberships with pay-per-session. The company recently announced a partnership with Aditya Birla Wellness in this regard.
The start-up claims that it has over 500,000 monthly active users and 9,100 gyms and health
clubs registered on the platform.
The fitness marketplace in India lags other major countries as a high entry barrier has restricted a major part of the community from joining any kind of fitness regimen. The rate of fitness penetration has been historically low in India. According to a 2009 report, only 0.37 per cent of people in India had a gym or a fitness membership.
According to Vora, the fitness services market in India is worth $2.5 billion and is growing at an annual rate of 21 per cent. Given the above-said scenario and the unorganised nature of the sector, the start-ups
in this sector are staring at the huge market potential.
Moreover, the government is also emphasising fitness. Programmes, such as the recently launched 'Fit India Campaign', is likely to encourage more people to take up physical activities and enrol into gyms and other services like yoga, aerobics and Zumba.
Though a greater number of Indians are now enrolling into fitness services, achieving scale would require a lot more effort in raising awareness around health
and making services more accessible. Standardisation of delivery, according to Vora, is a crucial aspect of the business. That means ensuring the same quality of service will be key, especially in creating customer stickiness.