Temasek is in talks to invest up to $100 million in health and fitness startup Cure.fit, two people aware of the matter said, as the Singapore state investor looks to diversify its strategy and back more tech startups.
Cure.fit is seeking a valuation of about $800 million post the fundraise, the people said on condition of anonymity, up from its $575 million valuation less than six months ago.
“Temasek is actively scouting for late-stage technology investments in India and wants to cut cheques of at least $75 million. Cure.fit needs the capital to grow its food and diagnostics plays, and the deal is expected to close in 6-8 weeks,” said the first person cited above.
Cure.fit was founded in 2016 by Mukesh Bansal, co-founder of fashion retailer Myntra, and Ankit Nagori, ex-chief business officer at Flipkart. Bansal and Nagori worked closely at Flipkart after the company bought Myntra in 2014. Cure.fit now owns gyms under the Cult.fit brand, and offers a range of healthy food options under Eat.fit, mental wellness programmes through Mind.fit and diagnostic centres through Care.fit.
A spokesperson for Temasek said the firm does not comment on market speculation and rumours, while Bansal did not reply to emailed queries.
Cure.fit, which is present in 16 cities mainly through its gym centres, aims to be a full-stack provider of health and fitness services. Its Eat.fit food services are already providing ₹10-15 crore a month in revenue, said the people cited above. Temasek’s interest in Cure.fit is part of its strategy to invest more in Indian technology firms. Its tech investments so far include ride-hailing firm Ola, IT services firm UST Global and payments machine firm Pine Labs. It is also leading a $220 million round in online pharmacy PharmEasy, The Economic Times reported on July 10.
Temasek had an India portfolio of $11 billion as on 31 March 2019, up from nearly $10 billion a year ago. In FY19, it invested $400 million in the National Investment and Infrastructure Fund (NIIF), a fund set up by the Indian government to boost infrastructure financing. It also took stakes in AU Small Finance Bank Ltd, Ascendas India Logistics Programme and Adani Ports and Special Economic Zones Ltd.
The Cure.fit deal also underscores a broader trend where startups are looking beyond Japan’s SoftBank for late-stage capital. Mint reported on 3 September that pension and sovereign wealth funds are moving in, loaded with money, risk appetite and willingness to wait for long.
This article was first published on livemint.com.