Cult.fit Files Draft Papers For ₹4,000 Cr IPO

New Delhi, India Jul 7, 2026 ALN: Fitness unicorn Cult.fit has recently filed its draft red herring prospectus (DRHP) to raise over ₹950 Cr through its initial public offering (IPO). This move marks a significant step for the company as it aims to tap into public markets to fuel its growth and expansion plans. The public issue will comprise a fresh issue of shares worth up to ₹950 Cr and an offer for sale (OFS) of up to 17.86 Cr shares.

The total IPO size, including the OFS component, is anticipated to be around ₹4,000 Cr, according to sources familiar with the matter. This substantial amount reflects the growing interest in the fitness sector in India, particularly in the wake of the COVID-19 pandemic, which has led to a heightened awareness of health and wellness among the population.

Noteworthy shareholders planning to offload shares via the OFS include Temasek Holdings, through its subsidiary MacRitchie Investments, Schroders Capital, the German fitness operator LifeFit Group, and cofounder Mukesh Bansal, along with several others. Specifically, MacRitchie Investments intends to sell up to 2.47 Cr shares, while Fitness First Luxembourg will offload up to 1.96 Cr shares. Cofounder Mukesh Bansal plans to sell up to 1.60 Cr shares. In total, around 22 institutional investors and 13 individual shareholders, including notable personalities such as actor Hrithik Roshan, are participating in the sale of their stakes through the IPO.

In the previous month, it was reported that Cult.fit, which is backed by Eternal, was aiming to raise between ₹3,500 Cr and ₹4,000 Cr from the public issue at a valuation of approximately $2 billion. This valuation indicates the company's rapid growth trajectory and the increasing investor confidence in the fitness sector, which has seen a surge in demand for gym memberships and fitness services.

Cult.fit plans to utilize the funds raised through the fresh issue for various strategic initiatives. These include setting up new cult centres with an allocation of ₹276.6 Cr, expenditures related to leasing, renting, and licensing of existing identified fitness centres amounting to ₹217.5 Cr, and repayment and prepayment of certain borrowings totaling ₹120 Cr. Additionally, the company aims to invest ₹23.4 Cr in establishing new exclusive brand outlets, ₹75 Cr in marketing and promotional activities, and the remainder for general corporate purposes. These investments are intended to be executed over the next three years, extending until FY30.

Cult.fit was founded in 2016 by Rishabh Telang, Deepak Poduva, Ankit Nagori (founder of Curefoods), and Mukesh Bansal (cofounder of Myntra). The company has since grown to operate a chain of gyms and fitness centres while also offering online classes focused on physical and mental well-being. This dual approach has allowed Cult.fit to cater to a wider audience, especially during the pandemic when many individuals turned to online fitness solutions.

It is important to note that the cofounders no longer hold executive positions within the startup, with the company currently being led by CEO Naresh Krishnaswamy. Under his leadership, Cult.fit has expanded its footprint significantly, operating 708 fitness centres across 77 cities in India as of March 31, 2026. The company boasts more than 9.87 lakh paid members, with 218 centres owned and operated directly by Cult.fit. The remaining centres are owned or operated by franchises (288 centres) or independent owners (202 centres).

In addition to its fitness centres, Cult.fit generates revenue from the sale of active lifestyle and fitness products, including fitness equipment, recovery products like massagers, fitness accessories, and activewear products such as apparel and footwear. Currently, approximately 70% of its products are sold online, while the remaining 30% are distributed through its network of 29 exclusive brand outlets. Krishnaswamy mentioned that the company plans to expand its retail presence by opening another 25-30 stores in the current fiscal year, with expectations for store-level breakeven within 9-12 months of opening.

In a bid to cater to a broader demographic, Cult.fit has also introduced an affordability offering, operating around 40 Cult Neo centres across the country. The company plans to expand this offering to over 100 cities, with the affordable segment growing at twice the pace of the premium category. Apart from Cult Neo, the company operates Elite gym and luxury fitness centres, providing a range of options for consumers with different fitness needs and budgetary constraints.

Financially, Cult.fit has shown promising growth. In FY26, the company reported an operating revenue of ₹1,720.6 Cr, representing a 41.5% increase from ₹1,215.5 Cr in FY25. Notably, the net loss narrowed significantly by 47.6%, decreasing to ₹251.8 Cr from ₹480.8 Cr in FY25. However, the startup's expenses during this period increased by nearly 16% year-on-year, totaling ₹2,027.5 Cr. This increase in expenses is reflective of the company's aggressive expansion strategy and investment in marketing and infrastructure.

Revenue from product sales has also seen substantial growth, reaching ₹522.8 Cr, which is a 60% increase from ₹326.4 Cr in FY25, and accounting for 30% of the company's total revenue. This diversification in revenue streams is crucial for the company's long-term sustainability and growth, especially in a competitive market.

To date, Cult.fit has successfully raised over $800 million from a variety of investors, including prominent names such as Zomato, Accel, Kalaari Capital, Chiratae Ventures, and South Park Commons. These investments underscore the confidence that venture capitalists and institutional investors have in the company's business model and growth potential.

As Cult.fit moves forward with its IPO plans, the fitness industry in India is poised for further growth. The increasing emphasis on health and wellness, combined with the company's innovative approach to fitness solutions, positions Cult.fit well to capitalize on emerging opportunities in this dynamic market. The IPO could provide the necessary capital to accelerate its expansion plans and enhance its service offerings, ultimately contributing to the overall growth of the fitness sector in India.