Tata Group is on an acquisition spree. The business giant wants to lead in the digital ecosystem as well. To strengthen its digital operations further, Tata Is in the advanced stage to acquire Curefit, an online fitness platform, as per the ET report. The current acquisition will not only help Tata to start it’s its operations in the online fitness area but it will also help Tata group to involve Curefit CEO Mukesh Bansal in their business journey.
Tata Group May Acquire Curefit Soon!
In India, three business giants are trying to capture the major business areas. Reliance, Tata, and Amazon are those three giants who are individually looking to establish their monopoly in the Indian business ecosystem. To achieve that, they are continuously acquiring the established firms to widespread their offerings.
Tata Group has already acquired big business firms like Big Basket, 1mg to increase their operations in the grocery and health sector respectively. Now, in the latest move to enter the fitness area, the company is in discussions to buy Curefit, now known as Cultfit.
Economic Times first revealed the news of the acquisition deal between Tata and Curefit. As per the analysis, if Tata gets successful In buying Curefit, it will help Tata group in two ways. First, the business conglomerate will be one step near to fulfill its dream of launching the super app. Under this app, Tata plans to offer all major businesses to its customers. Second, Curefit co-founder Mukesh Bansal is one of the popular names in the digital market. He may join the Tata team after the acquisition. This will help Tata to get a sharp mind in its Tata Digital initiative.
Ratan Tata is one of the early investors of Curefit. The Mumbai-based conglomerate is very keen to hire Bansal in its management team. The current deal may fulfill their wish very soon.
Bansal is handling the CEO post in Curefit for the last 5 years. Other than fitness and health startup, he also co-founded Myntra, one of those popular fashion platforms in India.
An insider person who is well aware of the current acquisition discussion said:
“Bansal could possibly get a wider role in Tata’s digital businesses, including those in which it recently picked up majority stakes, such as BigBasket and 1mg. The discussions are still not final and the terms may change.”
Why Mukesh Bansal is More Important for Tata Group?
Curefit has raised $418 million from investors including Temasek, Accel, Kalaari Capital among its investors. The startup has a market valuation of $800 million. Recently, the firm was rebranded to Cult.Fit. After buying a 100% stake in California-based Onyx in January, Curefit has recently acquired Fitternity, a fitness facilities aggregator.
It is surprising to know that people are more concerned about Bansal’s joining with Tata group instead of Curefit advantages to the business giant. For Tata also, Bansal matters more in the current deal than another thing.
Talking about the same, another insider person said:
“Bansal’s experience in scaling Myntra from a site selling personalized gifts to one of India’s largest fashion e-commerce players will be vital for Tata as it strings together a digital strategy.”
Flipkart acquired Mukesh Bansal’s startup Myntra in 2014 for $330 million. After that, he closely worked with Sachin Bansal, the co-founder of Flipkart.
Why Tata Group is so eager to hire Mukesh Bansal? As per an insider report, Tata group believes that if startup founders or sector experts will run the business, it will bring more developments since they are domain experts.
The anonymous person stated:
“This is even more crucial in the technology-led new economy. Their plan is to let company founders run their businesses.”
When contacted, neither Tata Group nor Curefit commented anything related to the current deal.