According to reports from CNBC TV18, ET Now, Moneycontrol, NDTV Profit and Business Standard, Cult.fit has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. The IPO comprises a fresh issue of equity shares worth up to ₹950 crore and an offer for sale (OFS) by existing shareholders. As per CNBC TV18, shareholders will collectively sell up to 17.86 crore equity shares through the OFS component. The company has appointed Axis Capital, Goldman Sachs, Jefferies, Morgan Stanley and JM Financial as the book-running lead managers to the issue. Moneycontrol reports that selling shareholders include Singapore-based Temasek Holdings-backed MacRitchie Investments, Fitness First Luxembourg, IDG Ventures India Fund, Tata Digital, Chiratae Trust, Schroders Capital, Twenty Nine Capital Partners, and Accel India V (Mauritius). NDTV Profit confirms that the Bengaluru-based fitness and wellness platform, backed by Temasek, Zomato and Accel, filed the DRHP on Tuesday, July 7. Business Standard reports that the IPO comes amid a shift in consumer spending towards preventive healthcare and wellness, driven by rising disposable incomes and growing health awareness.
According to The Hindu BusinessLine, Cult.fit reported a 36.3% year-on-year increase in revenue from operations to ₹1,720.6 crore in FY26, compared with ₹1,262.9 crore in FY25. The company also posted a significant improvement in profitability, with adjusted EBITDA margin improving to 8.41% in FY26 from a negative 2.76% a year earlier. Fitness services accounted for nearly 70% of revenue, while the direct-to-consumer (D2C) business contributed the remaining 30%. The fitness segment serves around one million paid active subscribers across more than 75 cities, while its D2C brand, Cultsport, shipped over four million units during FY26. CNBC TV18 had earlier reported that the company turned EBITDA positive in the fourth quarter of FY26, driven by strong demand for its premium hybrid subscription plans. Moneycontrol reports that the company had more than 987,000 paid members as of March 31, 2026, with memberships sold through multiple channels including its app and website, corporate partnership programmes and direct sales at its fitness centres. NDTV Profit confirms that the company's revenue from operations grew from ₹926.66 crore in FY24 to ₹1,215.54 crore in FY25 to ₹1,720.61 crore in FY26 - a CAGR of 36.26% over two years, with growth accelerating to 41.55% in FY26.
According to The Hindu BusinessLine, Cult.fit is India's largest fitness services provider by the number of fitness centres, operating a network of 708 centres across 77 cities as of March 31, 2026. The company had nearly 9.9 lakh paid members for its fitness services business during FY26 and shipped more than 4.23 million fitness products during the year. The company has built a diversified business model, with fitness services accounting for around 70% of revenue and fitness products for the remaining 30%. Besides gym memberships, Cult.fit sells fitness apparel, footwear, equipment, recovery products and accessories under the Cultsport brand. The Hindu BusinessLine reports that technology remains central to the company's operations, powering personalised workout recommendations, AI-driven decision-making, capacity optimisation and service delivery across its online and offline platforms. The company's revenue from operations grew from ₹926.66 crore in FY24 to ₹1,215.54 crore in FY25 to ₹1,720.61 crore in FY26 - a CAGR of 36.26% over two years, with growth accelerating to 41.55% in FY26.
As reported by LiveMint, the proposed IPO structure includes a pre-IPO placement of up to ₹190 crore that may reduce the fresh issue size accordingly. The overall IPO size will be determined after the price band is announced, as the value of the OFS will depend on the final issue price. The company will not receive any proceeds from the OFS, with the entire amount accruing to the selling shareholders. LiveMint reports that MacRitchie Investments, an affiliate of Temasek, will offload up to 2.47 crore shares, the largest portion of the OFS, while co-founder Mukesh Bansal will sell up to 1.6 crore equity shares through the offer. The offer will be listed on BSE and NSE, with the price band yet to be set. NDTV Profit reports that Hrithik Roshan is also listed as a selling shareholder, offloading up to 6.33 lakh shares received via an NCLT-approved scheme of arrangement. The company plans to utilize the proceeds from the fresh issue to fund lease and rental payments for existing fitness centres (₹217.5 crore), repay or prepay certain borrowings (₹120 crore), support brand marketing and business promotion (₹75 crore), while the remaining funds will be used for general corporate purposes. CNBC TV18 reports that the Zomato-backed firm has raised over $714 million across 16 funding rounds, with its most recent valuation reaching approximately ₹12,600 crore ($1.5 billion). The current IPO structure represents a smaller target than the earlier expected ₹3,500-4,000 crore, as reported by Goodreturns.
According to The Hindu BusinessLine, citing a Redseer report, India's fitness services market, estimated at around ₹25,600 crore in calendar year 2025, is expected to nearly double to ₹48,700-53,100 crore by 2030, driven by rising health awareness, increasing disposable incomes and greater accessibility of organised fitness platforms. Cult.fit held approximately 5% market share in India's fitness services market in 2025 by value, and was 14-18x the revenue of the second-largest player in FY25. The filing adds Cult.fit to a growing pipeline of new-age technology companies seeking to tap the public markets amid improving investor sentiment and a revival in India's IPO market. The company competes in services against Anytime Fitness India, Crunch, Fitpass and Snap Fitness, and in products against Decathlon, Adidas India, Puma, Campus Activewear, Cosco and Technogym India. The products arm, Cultsport, has posted segment losses for three consecutive years and remains unprofitable despite ₹23.4 crore of fresh IPO proceeds being earmarked for its expansion.
