Cult.Fit: Freemium Pricing During COVID-19

Abstract

This case describes how Cult.fit (formerly known as Cure.fit), a health and wellness company in India, responded to the challenges of the COVID-19 pandemic through the early launch of their freemium app. The second quarter of 2020 was a tough time for Cult.fit founders Mukesh Bansal and Ankit Nagori. After the Government of India announced a nationwide lockdown in March 2020 to control the outbreak of the COVID-19 pandemic, the market scenario was turbulent for physical gyms, yoga centers, and wellness centers, with most closing to prevent the spread of the virus. Cult.fit started building its freemium app and other digital assets in March to provide various online fitness and wellness offerings. It brought forward the launch of its Cult.fit freemium app to April 2020, originally planned to be released in the first quarter of 2021. Cult.fit was growing fast, but was tasked with sustaining growth in the post-pandemic phase. Mukesh and his team faced the challenge of converting free subscribers to paid subscribers. Was freemium the right model for Cult.fit, or should it change its pricing model?

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