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investment 2016-05-05

How a Delhi-based startup made sky rocketing gym charges as less as Rs999

With over 10,000 app downloads (iOS & android), highest in the Indian fitness market so far, Fitpass has bagged 25,000+ registered users, which includes 90 per cent users between 18-34 years of age, bringing more than 100% month-on-month revenue growth.

How a Delhi-based startup made sky rocketing gym charges as less as Rs999

As of 2010, the fitness industry was valued at Rs800 crore, which today is estimated at a whopping Rs3,000 crore.It has taken a leap at a scorching average of 28 per cent year-on-year.Spread across India is the presence of about 1,200 clubs and independent local gyms, bringing fitness to the lives of about 1.35 million Indians.

In this much luxurious yet expensive category of fitness, a Delhi-based startup – Fitpass has initiated to create a pass to fitness, available for only Rs999 and gives you authority to access over 1000 gyms and fitness studios in the capital. The moderately priced concept of Fitpass gives its users the flexibility to work out wherever they want, however they want and whenever they want.

In an exclusive conversation with WI Bureau, Akshay Verma, Co-founder & Director of Fitpass pointed out the tit-bits of hit fitness venture to help existing or upcoming players understand the industry well. Edited excerpts:

Key growth boosting factors

  • Fitpass breaks all the barriers to fitness – Price, location, convenience and variety
  • For only Rs999 per month, Fitpass users have access to 1000+ gyms (Fitpass commands the largest partner network of gyms and fitness studios in India)
  • Advanced technology - both for users and for partner gyms
  • Our product is a win-win for users and our partner gyms or studios. Fitness becomes super accessible for users through Fitpass (economical and ability to workout anywhere, anytime). Partner gyms or fitness studios earn significant additional revenue from us at zero cost.
  • Pedigreed team- Bolstered by a team with the strongest pedigree - Oxford, Columbia, IIT, St. Stephen's and Delhi University, with its teeth cut in UBS Investment Bank, McKinsey, the World Bank, Zomato, KPMG, etc. We have established ourselves as the undisputed category leader in the Indian fitness market
  • Superior domain knowledge
  • Major challenges of a potential player
  • Building the technology to solve for the market inefficiencies
  • Building a partner network as large and dense as commanded by Fitpass
  • Training the staff at partner gyms/studios to use proprietary technology
  • We were able to overcome these challenges because of our superior domain knowledge and the sheer dedication of our team to solve the problem and make fitness super accessible to users
  • Current turnover

    Based on our run rate figures from the first quarter of 2016, we estimate that we will be able to generate in excess of $5million in revenue for our partner gyms/fitness studios in the next 12 months. By being the most economical and convenient choice for users, we believe that Fitpass is best positioned to remove market inefficiencies through technology and help both, users by making fitness super accessible and partner gyms/studios by helping them earn significant revenues at zero cost.

    Therapeutic areas to enter next

    By focusing on making fitness accessible, we are significantly contributing to tackling lifestyle diseases. Our vision is that Fitpass will be all you need to get fit and stay fit so we will be enabling and democratising all avenues of fitness and wellness for users.

    Potential competitor

    The health, fitness & wellness ecosystem can only exist if people can actually get fit. And that’s the problem we’re solving. We’re making fitness affordable and accessible. We see ourselves as enablers as our model ensures great benefits to all our stakeholders.

    Geographic presence

    Currently present in Delhi NCR, Fitpass has elaborate plans to establish itself in the other big markets of Bengaluru, Pune, Mumbai, Chennai, Hyderabad and Chandigarh soon.

    Future endeavours

    Fitness consciousness is rapidly rising in India. Today, in India, Gyms is a more searched word than Bollywood on Google. Our vision is to make fitness and everything related to its super accessible to the Indian consumers, so we will certainly be increasing our presence in Tier II and III cities across the country.

    Online presence

    We are an app based service (iOS and android) and are also available on the web.

    Strategy to lure elite clients

    Fitpass offers immense savings, convenience and flexibility to its users. Fitpass users have access to unparalleled variety of choices from Yoga, Zumba, Pilates, Aerobics, MMA, Cross Fit, circuit training, kickboxing, spinning, boot camp and many more. This is also clear in our user activity patterns – almost 50 per cent of our users regularly attend new age group workouts.

    Overseas presence

    The fitness services market in India is estimated at $20 billion per annum and is the fastest growing services market (25 per cent per annum). We are currently focused on expanding our footprint across India. However, our product is a good international fit and should the opportunity arise, we can consider overseas expansion for Fitpass.

    Promising business opportunities

  • Indian is getting richer and unhealthier - 10 per cent of Indians are diabetic, 5 per cent are obese and 33 per cent suffer from hypertension & blood pressure. However only 0.5 per cent Indians have a health club membership - ‘it’s time to move from food-tech to fit-tech’.
  • Disposable income has grown 200 per cent over the last 5 years. This increase is greater in urban areas where lifestyle diseases and fitness consciousness are rapidly on the rise
  • Urban population- c.400 million.
  • Gyms and fitness studios are central to the Indian fitness ecosystem due to the lack of alternative options such as running tracks, cycling tracks, sports facilities, etc.
  • The fitness services market is highly unorganized- Big Opportunity
  • Delhi represents the biggest Indian market opportunity- 16 per cent of India’s market
  • Fitness Industry is growing at 25 per cent per annum (faster than any other services sector)
  • The larger health, fitness & wellness ecosystem can only exist if people can actually get fit. And that’s the problem we’re solving. We’re making fitness affordable and accessible.

  • What’s more?

    Fitpass users have access to unparalleled variety of choices from Yoga, Zumba, Pilates, Aerobics, MMA, Cross Fit, circuit training, kickboxing, spinning, boot camp and many more. Fitpass is an app based service available on iOS and android.

    The start-up is successfully removing friction and creating marketplace efficiencies through technology and bringing in the age of ‘fit-tech’ in India:

    USER: Fitpass makes fitness accessible by making it economical, convenient and fun. Fitpass breaks all the barriers to fitness – price, fixed schedules,

    GYMS/FITNESS STUDIOS: Fitpass helps them increase their utilization rates and generate additional revenue. Fitpass also provides tech enabled services to help gyms and fitness studios manage their business needs and generate cost savings.

    Current Traction

    With over 10,000 app downloads (iOS& android), highest in the Indian fitness market so far, Fitpass is efficiently making way towards a successful venture. The startup has 25,000+ registered users which includes 90 per cent users between 18-34 years of age, bringing more than 100 per cent month-on-month growth in revenue.

    Double digit conversion rate – very high for e-commerce and especially so for an Rs.999 minimum purchase (avg. conversion rates for eCommerce: 0.5-1per cent)

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