Fittr, a digital fitness and nutrition community platform, has reported a revenue growth of 53.5% to Rs 89.19 crore in FY22 from Rs 58.11 crore in FY21. The sale of fitness and wellness services was the major revenue driver, accounting for 92.9% of the total collections, while coaching services and short-term workshops contributed relatively little to the company’s coffers. Fittr also saw an eight-fold increase in advertising costs, which resulted in significant losses in FY22. Its expenses on employee benefits and overall expenditure also rose significantly. Fittr was bootstrapped for the first three and half years and then raised $2 million from Sequoia’s accelerator program Surge in April 2020, followed by an $11.5 million round in 2021 from Dream Capital and Elysian Park Ventures. Fittr will need to be on its toes evaluating its proposition as well as reining in customer acquisition costs to ensure a healthy balance sheet going forward.
Fittr may face a risk of users migrating to direct deals with trainers for better deals since most of its fees are relatively high. To mitigate this risk, the company needs to constantly evaluate and improve its value proposition to ensure that it is providing sufficient value to its customers at a reasonable price point. Additionally, Fittr needs to focus on keeping customer acquisition costs in check to ensure a healthy balance sheet going forward. By doing so, it can maintain its competitive edge and continue to grow in the highly competitive digital fitness and nutrition market. Fittr Hart smart ring is a step towards diversifying its product offerings and expanding into the hardware side of the business. However, developing and launching new hardware products can be costly and time-consuming, and may require further rounds of funding. In a tough funding environment, it could be challenging for Fittr to secure the necessary capital to continue developing and marketing new products. Therefore, the company will need to carefully balance its investments in hardware and software products and focus on achieving a sustainable business model to ensure long-term success.