BookYourGame takes Curefit to court, gets an injunction against product
Refuting the allegations, Curefit told ET that the transaction never progressed to definitive closure or to a formal on-boarding of BYG employees.
The Bangalore City Civil Court issued the restraint order on August 7 against Cure.fit, ordering it to not launch, promote, market or sell any product or service using the ‘Gym.Fit, CultX, and Sports.fit’ names, in any manner. The next court hearing is on September 11, as per the order.
BYG runs an app that provides customers access to more than 2,000 gyms via pay-per-use sessions. It also provides Software as a Service (SaaS) solutions to gyms.
Curefit is set to launch a national gym subscription called Gym.Fit, which aggregates gyms across the city. BYG alleged in its petition that the health and fitness platform had offered to acquire it for about Rs 5 crore in June, but subsequently retracted after exchange of crucial data and intellectual property.
“Employees of BYG began to be inducted as employees of Cure.fit. Cure.fit formally welcomed the employees, as established by email dated 11-06. Based on express promises by Cure.fit, and in good faith, BYG and its employees complied with instructions of Cure.fit to begin sharing confidential information,” according to the petition that had attached multiple screenshots as evidence.
ET has reviewed a copy of the petition. BYG declined to comment on the ongoing court proceedings.
Refuting the allegations, Curefit told ET that the transaction never progressed to definitive closure or to a formal on-boarding of BYG employees. A fair breakaway fee was also offered to BYG, it said.
“Gym.fit is an internal Cure.fit initiative with nothing to do with BYG. During diligence, we found some potential legal and compliance issues in BYG's operations and hence decided to call off the proposed deal," the company said in a statement.
Myntra founder and former Flipkart veteran Mukesh Bansal had written in an email to employees on July 21 that the new Gym.Fit business was “a potentially large initiative." ET has seen a copy of the email.
Since its inception, Curefit has acquired multiple startups to boost growth including Cult, Rejoov, A1000yoga, Opinio, and Kristys Kitchen. In June, CureFit closed a $120 million round led by existing investors including Chiratae Ventures, formerly IDG Ventures, Accel Partners, Kalaari Capital, and Oaktree Capital.