From ₹30,000 to ₹1,000: How Akshay Verma From FITPASS Is Making Fitness Affordable for Indians

When Akshay returned to India, he found the fitness market challenging as a consumer. Overall the fitness landscape was expensive in the long run, and that made the brother-sister duo find a gap in the industry back in 2015, at a time when startups were focusing on Roti, Kapda, and Makaan. That's when Akshay Verma, along with his sister Arushi Verma, decided to make fitness accessible and affordable for everyone. 

Abhishansa Mathur was in a candid conversation with Akshay Verma about his shift from working in an investment bank to entrepreneurship,  journey, market challenges, and more. Below is the excerpt from the interview. 

Tell us about your journey. How did the FITPASS story begin?

This is my first and only full-time venture. In 2012, I co-founded a company with two friends while I was living in New York, but it was more of an investment. I returned to India at the end of 2013. After that, I started a social venture in my home state of Bihar. Then, in September 2015, we launched FITPASS.

Actually, there was no plan. I was supposed to return to my job in private equity and leveraged finance at UBS Investment Bank in London, as I was on a sabbatical. However, many things happened during this time. I have always been active and played sports semi-professionally, including football for Delhi State.

When I returned, I found accessing fitness facilities in Delhi difficult, despite my background. Gyms required year-long upfront payments and didn’t offer comprehensive services. For example, you could go to a gym for cardio and strength training, but needed separate memberships for yoga or cross-body workouts. This made fitness expensive and inconvenient.

My co-founder and sister, Arushi, also faced challenges. She needed varied workouts for health reasons, as doing the same workout for 90 days leads to diminishing returns. So, we decided to address these issues. We wanted to create a solution that combined multiple fitness options into one affordable membership.

At that time, the average age in India was around 28, with an average income of ₹27,000-₹28,000. Paying ₹30,000-₹40,000 for a gym membership was unrealistic, considering other expenses like rent, taxes, and social activities. The fitness industry was dominated by supply-side pricing, where gym owners set high prices to cover their costs, rather than based on consumers' ability to pay.

In September 2015, while India was focused on solving basic needs like food, clothing, and shelter, we aimed to tackle the fitness challenge. Despite the market being different then, we decided to proceed. We didn't have a detailed plan; we just wanted to solve the problem for ourselves and our friends. The positive response encouraged us to continue.

I quit UBS, and Arushi left her job at the World Bank. We come from a family of professionals, not entrepreneurs, so starting this venture was unplanned and challenging. But here we are.

What is the current size of the fitness market you are targeting, and how did FITPASS carve out its niche?

There are two perspectives on the fitness market. One is the current spending, which represents about a $1.8 billion industry in India. However, this figure reflects the existing market constraints, such as high price points and long-term contracts.

The other perspective considers the supply side: there are around 20,000 gyms in the top 15 cities, each with the capacity to serve 200-300 people daily. These gyms operate at only 20-30% capacity, representing an $8 billion market. By addressing this underutilized capacity, we tap into a vast potential.

FITPASS carved its niche by focusing on the consumer's needs rather than the asset owners'. Unlike competitors who emphasise asset ownership, FITPASS provides an affordable, flexible solution by leveraging a shared economy model. Just as Uber and Airbnb disrupted their industries by making services more accessible and affordable, FITPASS aims to transform a ₹30,000 annual gym membership into a ₹1,000 monthly subscription.

We recognised that Indian consumers value choice and flexibility. Rather than locking customers into long-term, high-cost commitments, FITPASS offers a diverse range of fitness options and convenience. This approach aligns with consumer behavior, which favors variety and control.

Today, FITPASS holds a 52% market share in the Indian fitness sector. While some brands may be better known, FITPASS excels in metrics like daily active users, monthly active users, and revenue due to our focus on business-to-business operations. As we invest in our brand and build our consumer presence, we continue to lead the market.

How did the first version of FITPASS differ from the current one, and how has it evolved over the years?

When we launched FITPASS in September 2015, we started in South Delhi with just 70-75 gyms and fitness studios in our network. Initially, we set our price at ₹2,500 per month based on partner feedback, though we had intended to price it at ₹1,000. This was because gyms warned us that customers would use the service extensively—up to 25-30 times a month—so we feared underpricing ourselves.

This decision led to a rapid influx of competitors within just three months. The competitive landscape became crowded, and the market’s attitude toward fitness was skeptical. A VC once told us fitness wasn’t a priority, reflecting the broader attitude that fitness was secondary to basic needs. 

By early 2016, our data showed that customers were only working out 8-10 times a month, making each workout cost around ₹325. This high cost per workout, compared to other services, was unsustainable. Recognising that our initial pricing was incorrect, we revised our strategy.

On January 1, 2016, we restructured our pricing to ₹999 per month and expanded access to 1,000 gyms. This adjustment was a game-changer. The new pricing allowed us to tap into a much larger market and grow at a remarkable rate. Our competitors, who had based their models on our original ₹2,500 price, struggled to keep up and began shutting down.

This shift in the market dynamics led to a revised perception from VCs. Initially, they saw too much competition; later, as many players exited the market, they questioned the viability of the space. We had to decide whether to adapt or exit. Given the challenges of the Indian VC landscape that time, we chose to focus on building our business.

Today, we've achieved profitability for two consecutive years and have a significant market share. We now serve 1.1 million active customers monthly, with 1,12,000 daily workouts across our network. The scale of our success surpasses what we initially envisioned.

As FITPASS creates a network of gyms and fitness studios. How do you ensure a seamless experience for your customers amid all the variables?

Technology is central to ensuring a seamless experience for our customers. Similar to how Uber, OYO, and Airbnb standardise their services, we use technology to maintain high standards across our network of gyms and fitness studios.

We implement a rigorous 134-point checklist for onboarding any fitness facility, whether it's a gym, yoga studio, Pilates studio, Zumba center, or swimming pool. This checklist evaluates everything from infrastructure and training quality to the education level of staff, and amenities like valet service, air conditioning, or towels.

In addition to this, we provide a partner-side app that helps facilities manage their schedules, attendance, payouts, and invoicing. This app ensures that each partner operates smoothly and meets our standards.

Our approach positions us as a tech-driven service provider. We don’t own the assets but use technology to deliver a consistent, high-quality experience. Our tech infrastructure ensures that every fitness facility in our network adheres to our standards and aligns with the user's preferences, making sure that the experience is relevant and of excellent quality.

With the fitness category evolving and numerous offerings available to consumers, how do you make FITPASS stand out?

No one else operates with a shared economy model like ours. Consider airlines: despite many launching in India since independence, none have become unicorns. Owning and operating airlines is a tough business, with many failing over time. In contrast, travel agents like MakeMyTrip and Goibibo, which don’t own the assets but sell tickets, thrive and become unicorns.

Similarly, managing an asset is challenging from providing access to a fitness network as it a different model entirely. Our approach at FITPASS is unique and holistic. We began by providing access to a network of fitness centers. In 2016, we launched our app, followed by FITFEAST in 2017, which offers personalized nutritionist services. In 2018, we introduced FITCOACH, an AI-driven coaching tool that has become one of the largest in the world, serving about 750,000 Indians each month.

From 2019 onward, we worked with the Indian government to include fitness access in health insurance coverage, making FITPASS the only approved provider in this space. This means that regardless of the health insurance company you choose, they offer FITPASS as a feature.
FITPASS stands out because we provide a comprehensive solution for fitness and wellness. While many competitors focus on isolated aspects like nutrition or exercise, FITPASS integrates all these elements into one platform.

You can access workout plans, nutrition advice, emotional wellness support, and medical consultations all in one place. This comprehensive approach ensures that once you’re in the FITPASS ecosystem, there’s no need to leave.

What's your mantra for acquiring and retaining users?

Experience. We have a mantra called 6-7-8 that helps us acquire and retain users by making fitness approachable and sustainable. In fitness, people often believe they need to commit to intense, regular workouts to see results. This can be discouraging and overwhelming. We compare this to the food industry, where the term "foodie" has a positive connotation and doesn’t imply gluttony or an extreme lifestyle. Whether you are a vegan, eat out once a month or every week, you can still identify as a foodie.

That word did not exist in fitness. Fitness had been sold to us via people who were super athletes or pros. So the word was "fitness freak," which carried an extreme connotation, implying that one had to give up everything in life to be fit.

We introduced the term "fitster" to describe someone who incorporates fitness and wellness into their life on their own terms, just like a foodie enjoys food. A fitster is a normal person with social, family, and personal commitments who integrates fitness at their own pace. Sometimes they might be very dedicated, other times less so, but they always do something to improve themselves.

Our 6-7-8 mantra is designed to ease people into a fitness routine. In the first month, we recommend doing six workouts. In the second month, increase to seven workouts. In the third month, aim for eight workouts. This adds up to 21 workouts over 90 days. By doing this, users start making time for fitness, fitting it into their schedules, and becoming disciplined about it. After 21 workouts in 90 days, it starts to become a habit.

Additionally, after completing 21 workouts, users begin to receive social validation. This could be as simple as someone noticing a change in their posture, commenting on how they look, or noting a glow in their skin from regular workouts. This positive reinforcement encourages them to continue.

Our retention rates are over 93% for those who follow the 6-7-8 plan. The real challenge we face is getting people to leave their homes for workouts. Unlike other services that bring everything to your doorstep, we encourage users to come out. Our biggest competition is the couch. If we can motivate someone to tie their shoelaces and step outside, we’ve succeeded. If not, the couch wins.

What advice do you have for young entrepreneurs looking to build something in the fitness and health industry?

I think there is no better time than this, but I think this is one of the most challenging industries to build in. Everyone knows they should take care of themselves, but they often deprioritize this investment. People will invest in stocks immediately but hesitate to invest in their health.

India is a young country, with 50% of the population under 35 and an average age of 28. To become a $5 trillion economy, we need a healthy workforce. If people get sick, they’ll spend on medicines instead of consumer goods, which drives economic growth. The government must prioritise health.

Today, the challenge is not convincing people to invest in their health but showing them how. When we started, we had to explain and convince people of the importance of self-investment. Now, it's about providing effective solutions. The market is more receptive now than it was seven or eight years ago.

However, entrepreneurship should not be glamorized. It’s a difficult journey that requires sacrifice. Success can be fleeting, and it’s a mindset game akin to playing a sport. Aspiring entrepreneurs should read books and listen to elite athletes like Federer, Nadal, Djokovic, or Kohli to understand the importance of mindset and the process because the result is not something you control.

If you’re willing to invest in the process, then you should pursue entrepreneurship. If not, wait until you’re ready.