Fittr is a community-based health and fitness marketplace. Since scaling up operations was a tremendous challenge, its revenue performance for fiscal 2024 ending March is flat. The company funded by Rainmatter Capital reports minor setbacks in revenue, but it has managed to reduce its loss significantly during the same period.
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Fittr’s revenue from operations decreased modestly by 3% to ₹85 crore in FY24 from ₹87.5 crore in FY23. The revenue growth in the company has remained stagnant over the last three consecutive years. Its online services in fitness and wellness accounted for the highest revenue, which was at ₹80 crore, although it declined by 4.42% from ₹83.7 crore witnessed a year ago.
The company has also started exploring new revenue streams, such as smart ring sales, which brought in an additional ₹80 lakh. Academic fees and other income sources added ₹2.8 crore and ₹1.4 crore respectively. Non-operating revenue added ₹1.3 crore, which sums up to a total revenue of ₹86.3 crore for the year.
Though revenues stayed flat, Fittr was successful in bringing the total costs 26% lower down, which in FY24 were reduced to ₹97 crore from ₹131 crore for FY23. It did it primarily by curbing cuts from most cost heads. Employee benefits dropped 36.2% and had been at ₹20.8 crore. In terms of ad expenses, a sharp drop was also observed here – a cut of 65.8%, amounting to ₹8.4 crore. Other overheads fell 30%, totalling ₹13.5 crore.
The largest cost component, which includes consultant and study material expenses, was flat at ₹54.3 crore, indicating that Fittr is keeping a tight lid on costs while maintaining quality service elsewhere.
This strategic expense management reduced the losses substantially by 73.5% to ₹11 crore in FY24, thus a significant improvement from the loss of ₹41.5 crore in FY23. The ROCE and EBITDA margins, however, were still in the negative. It stood at -38.89% and -10.66%, respectively. The expense-to-earning ratio was ₹1.14, indicating that Fittr still spent more than it earned, though at a much lesser rate compared to the earlier time.
As of March 2024, Fittr had ₹46.5 crore in current assets, which included cash and bank balance of ₹27.8 crore. This cash cushion helps the company ride through the turmoil of scaling its business.
Fittr has managed to raise $17 million in funding to date, including a recent $3.5 million round led by Zerodha-backed venture fund Rainmatter. Other investors include Surge, Dream Capital, and Elysian Park. The ability of the company to attract investments even during its growth challenges shows the confidence of its business model and long-term prospects.
The FY24 performance of Fittr showcases the intricacies of the health and wellness market, where revenue growth is difficult. However, the drastic decline in losses indicates that the company is on the right track toward financial stability. How well Fittr can navigate these challenges and capitalize on future growth opportunities remains to be seen as it continues to refine its offerings and explore new revenue streams.
