Another business acquisition and yet another legal battle!
BookYourGame, a marketplace to discover and book fitness centres, has lately accused CureFit the fitness giant also it’s arch rival of acquiring confidential information under the ruse of acquiring the startup.
According to claim made by BookYourGame (BYG), CureFit had offered to acquire it for Rs. 5 crore, but retracted the offer after the exchange of crucial data and intellectual property following which the company has now taken CureFit to the court, and have been granted a temporary injunction against CureFit’s launch of Gym.fit, its gym service.
“Employees of BYG began to be inducted as employees of CureFit,” BYG said about the acquisition in its petition. “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,” the petition added. BYG also shared screenshots of the email with its petition. One such screenshot, which is now circulating on the internet, shows an email from a CureFit employee to BYG employees, titled “Welcome Aboard.” The email talks about an “interaction” scheduled with members of the BYG team on the 12th of June at CureFit’s office.
On the other hand, CureFit on it’s part has maintained that the acquisition never formally happened and that there was no on-barding of BYG employees.
“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. CureFit also additionally said that it offered BYG a “fair breakaway fee” for not completing the deal.
BYG and CureFit operate in the same industry. While BYG provides its customers access to more than 2,000 gyms via pay-per-use sessions, and has a Software as a Service (SaaS) solutions for gyms, CureFit, founded by ex-Flipkart execs Mukesh Bansal and Ankit Nagori, is the largest startup in India in the personal fitness space which raised nearly $300 million (Rs. 2,100 crore), and successfully runs a host of fitness classes including Crossfit, Yoga, and even a workout regimen in collaboration with Bollywood star Hrithik Roshan.