Cult.fit, a prominent fitness and wellness platform, has officially submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) as part of its plan for an initial public offering (IPO). This initiative includes a fresh equity issue valued at up to Rs 950 crore in addition to an Offer for Sale (OFS) involving up to 17.86 crore equity shares from existing shareholders.
Highlights
Details of the IPO and Fund Allocation
As outlined in the DRHP, the company might also consider a pre-IPO placement of up to Rs 190 crore. Should this occur, the size of the fresh issue will be adjusted accordingly. The final size of the IPO will be confirmed once the price band is established, as the valuation of the OFS will hinge on the issue price.
MacRitchie Investments, backed by Temasek, is set to be the leading seller in the OFS, intending to offload up to 2.47 crore shares. Other stakeholders involved in the sale include Fitness First Luxembourg, IDG Ventures India, Tata Digital, Chiratae Trust, Accel entities, Kalaari Capital, Schroders Capital, and co-founder Mukesh Bansal, who plans to sell up to 1.6 crore shares.
Utilisation of Proceeds
The company aims to allocate Rs 217.5 crore for lease and rental payments for its current fitness centres, Rs 120 crore towards the repayment or prepayment of loans, and Rs 75 crore for brand marketing and business promotion. Any remaining funds will be directed towards general corporate purposes.
Strengthening Corporate Governance
Prior to the filing, Cult.fit enhanced its board by appointing independent directors, including Kalpana Morparia, Arun M Kumar, Indu Bhushan, and Pragya Misra, to align with SEBI’s corporate governance standards.
Funding and Valuation History
As per the filing, Cult.fit has raised over $714 million through 16 funding rounds, with its latest valuation recorded at approximately Rs 12,600 crore ($1.5 billion) following a $47.6 million Series G round in March 2026. The company’s existing investors encompass Tata Digital, Temasek, Accel, Kalaari Capital, Chiratae Ventures, and Zomato.
Operational Overview
Founded in 2016 by Mukesh Bansal and Ankit Nagori, Cult.fit currently operates more than 700 fitness centres throughout India and additionally manages the Cultsport and Care.fit brands. For the fiscal year 2026, the company is projected to generate around Rs 1,700 crore in revenue, primarily driven by growth within its fitness segment, which accounts for nearly 70% of total revenue. Nevertheless, the company still reports net losses.
Lead Managers for the IPO
The lead managers for this issue include Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India), Jefferies India, and JM Financial, with MUFG Intime India serving as the registrar.