Cost Estimates

Particulars Amount (Rs) Details

Office space (with Electricity, water etc.) 1800000 12 X 200000

IT infrastructure (Computers, Broadband, Cloud service etc.) 1800000 12 X 150000

Human resource cost 7200000 12 X 600000

Software Development (Server cost, domain, mobile app) 1000000

Sales cost 1200000 12 X 1000000

(Installation cost)

Basic 0

Premium (with machine connectivity) 12000000 60 X 100000

Total cost for first year 25000000

 Pricing model
Basic pack: Web & mobile application for managers, members & staff

Premium pack: Basic features + Cloud connected fitness machines + Data insights

<100 members 100-300 members >300 members

Basic (Rs.) 60 50 40

Premium (Rs.) 130 110 90

Average no. of members per gym: Rs. 200

Average per member monthly price: Rs. 50 (basic) & Rs. 110 (premium)

Average revenue per gym: Rs. 1,20,000 (basic) & Rs. 2,64,000 (premium)
 Revenue Estimates
Particulars (1st Year) Amount (Rs.) Estimated no. of customers
Basic 14400000 (1st Year)
Premium 15840000 Basic (Tier-1 &
120
Total revenue 3,02,40,000 Tier-2 gyms)
Profit before tax and interest 52,40,000
Premium (Tier-2) 60
Gross profit margin (%) 20.96

Future growth of revenue Amount (Rs.) Expected

growth in Year 2 (20%) Year 3 (30%)
customers
Revenue Year 2 3,99,16,800
Basic 144 187
Premium 72 93
Revenue Year 3 5,16,91,200
*Prices estimated to increase by 10% each
year