Growfitter
Initial Ask – Rs. 50 lacs for 2% equity at a valuation of Rs. 50 Cr.
About the Company
It is a mobile based application, which motivates people to become fit by providing attractive rewards, offering a health insurance plan at just Rs. 240/month in return for 30-minutes of physical activities every day. They have built their app in a fashion that tracks motion sensing and thus rewards for the physical activities recorded. They built this app under the Korean Government.
They have already recorded 2.5 lacs+ downloads of their app, growing month on month at a rate of 20%. They have 15000 paid subscribers as of now. They want to create a community, which is fitter and healthier, along with a health insurance plan at the end of the day.
Past performance of the Company
They recorded sales worth Rs. 17 lacs in the month of October 2021, out of which Rs. 6 lacs of free rewards were covered. Apart from this, they burn money in operating costs and marketing, which makes the net burn Rs. 15 lacs.
Industry Overview
The fitness industry has seen worldwide growth due to the pandemic. It has infused health concerns and the need for remaining fit in individuals of almost all age groups. This has helped out the fitness services to grow immensely, especially in the online format. Indian fitness apps saw 156% increase in the first and second quarters of 2021. These statistics are in favour of this company’s growth, motivation for physical activities being its major motive.
The concerned industry is worth Rs. 3 lac crores, and represents immense opportunities for growth due to the above mentioned factors.
Previous Equity Split/Investments
They raised Rs. 3 Cr. previously at a valuation of Rs. 30 Cr.
Offers made, and the one accepted:
Aman Gupta offered them Rs. 50 lacs, but for 2% of their company’s equity. This was based on the condition that Aman’s R&D team would validate the technology used. The deal was done without any further negotiations.