Kazakh startup 1Fit fails in Malaysia despite millions invested

1Fit, a Kazakhstani startup that offers fitness services under a single-membership model in different fitness centers, is winding down its operations in Malaysia, as Murat Alikhanov, the company’s CEO, announced on the company’s official Instagram page.

«When we launched 1Fit in Malaysia, we had big dreams. We wanted to make fitness more accessible, flexible and exciting — not just for users, but for gyms and studios too. And in many ways, we succeeded. Over the past year, our community in Malaysia completed more than 356,000 workouts using the 1Fit app,» Alikhanov said.

According to him, the company partnered with 600 studios and gyms in Kuala Lumpur and paid more than $1.2 million to support their businesses. Alikhanov noted that Southeast Asia — Malaysia in particular — is one of the most promising markets for fitness. This was the reason the startup decided to test its hypotheses, allocating $4.2 million for marketing and hiring a qualified team of specialists.

«We generated $2.7 million in sales, and you can quickly figure out that the math doesn’t add up. We tried to make the numbers work. We tried to raise more capital. We explored every option to keep things going, but in the end we couldn’t secure the funding we needed to continue. This is not how we wanted the story to end,» Alikhanov summarized.

He pledged that users with an active subscription would receive a refund, while 1Fit’s representatives would contact all partnering gyms and studios in person.

This is not the first time the startup has faced difficulties and shut down operations. In late April, the company announced its exit from the Mexican market, citing significant financial strain after operating for less than a year in the country. According to El Financiero, a Mexican media outlet focused on finance and politics, 1Fit left the market without prior notice to users or partners, also leaving behind debts and unfulfilled obligations.

In 2023, 1Fit terminated its project in the U.K., and in 2022, in Russia. The unsuccessful expansion to London resulted in a $97,000 loss and operated for less than six months. However, 1Fit continues to operate successfully in Kazakhstan, Uzbekistan and Azerbaijan.

Forbes Kazakhstan reported that 1Fit generated $20.2 million in income in 2023. Murat Alikhanov was included in the Forbes 30 Under 30 list in 2020.