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

Fitness unicorn Cult.fit has filed its draft red herring prospectus (DRHP) to raise over ₹950 Cr through its IPO. The public issue will comprise a fresh issue of shares worth up to ₹950 Cr and an offer for sale of up to 17.86 Cr shares.

The total IPO size including the OFS component is likely to be around ₹4,000 Cr, sources told Inc42.

Temasek Holdings, via MacRitchie Investments, Schroders Capital, German fitness operator LifeFit Group, Accel, Tata Digital and cofounder Mukesh Bansal are among the shareholders who plan to offload shares via the OFS.

While MacRitchie Investments plans to offload up to 2.47 Cr shares, Fitness First Luxembourg will sell up to 1.96 Cr shares. Cofounder Bansal will sell up to 1.60 Cr shares. Overall, around 22 institutional investors and 13 individual shareholders, including actor Hrithik Roshan, will be offloading part of their stakes through the IPO.

Last month, it was reported that the Eternal-backed gym franchise operator was looking to raise ₹3,500 Cr to ₹4,000 Cr from the public issue at a valuation of about $2 Bn.

Cult.fit plans to utilise the funds raised through the fresh issue towards setting up new cult centres (₹276.6 Cr), expenditure toward leasing, renting and licensing of existing identified fitness centres ( ₹217.5 Cr), repayment and prepayment of certain borrowings (₹120 Cr), setting up new exclusive brand outlets (₹23.4 Cr), marketing and promotional activities ( ₹75 Cr) and general corporate purposes. These investments will be made over the next three years until FY30.

Founded in 2016 by Rishabh Telang, Deepak Poduva, Curefoods founder Ankit Nagori and Myntra cofounder Bansal, Cult.fit operates a chain of gyms and fitness centres and offers online classes for physical and mental wellbeing.

Notably, the cofounders do not hold executive positions at the startup anymore, with Cult.fit being helmed by CEO Naresh Krishnaswamy.

It operated 708 fitness centres across 77 cities in India and had more than ​9.87 Lakh ​paid members as of March 31, 2026. Out of these 187 centres are operated by the company while the rest are franchise businesses.

The company also earns revenue from sale of active lifestyle and fitness products such as fitness equipment, recovery products like massagers, fitness accessories, as well as activewear products such as apparel and footwear.

Currently, 70% of its products are sold online, while the remaining are sold through its network of 29 exclusive brand outlets, Krishnaswamy told Inc42 last month. The company is planning to expand with another 30-25 stores this fiscal year, with store-level breakeven expected within 9-12 months of opening.

At the same time, the startup has also been expanding through an affordability offering, operating around 40 Cult Neo centres across the country. Cult.fit plans to take this offering to over 100 cities, with the affordable segment growing at twice the pace of the premium category. Apart from Neo, Cult operates Elite gym and luxury fitness centres as well.

In FY26, it posted an operating revenue of ₹1,720.6 Cr, up 41.5% from ₹1,215.5 Cr in FY25. Net loss narrowed 47.6% to ₹251.8 Cr from ₹480.8 Cr in FY25. The startup’s expenses during the period jumped almost 16% YoY to ₹2,027.5 Cr.

Revenue from product sales grew to ₹522.8 Cr, up 60% from ₹326.4 in FY25, accounting for 30% of its top line.

Cult.fit has raised over $800 Mn to date from investors like Zomato, Accel, Kalaari Capital, Chiratae Ventures, South Park Commons, among others.

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