Fitness and active lifestyle company Cult.Fit has filed its draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering that could raise approximately Rs 950 crore. The move marks a significant step for the Bengaluru-based firm as it seeks to capitalize on India's growing fitness market.
Offer Structure and Shareholders
The IPO comprises a fresh issue of shares worth up to Rs 950 crore, along with an offer-for-sale of 17.86 crore equity shares by existing shareholders. Prominent investors selling shares include MacRitchie Investments, a Singapore-based entity backed by Temasek Holdings, Fitness First Luxembourg, IDG Ventures India Fund, Tata Digital, Chiratae Trust, Schroders Capital, Twenty Nine Capital Partners, and Accel India V (Mauritius).
Before filing the red herring prospectus with the Registrar of Companies, the company may consider a pre-IPO placement of up to Rs 190 crore. This placement would be part of the new issue and would reduce the size of the proposed fresh issuance accordingly.
Use of Proceeds
Cult.Fit plans to deploy the funds primarily to expand its network of Cult Elite and Cult Neo fitness centres. Cult Elite offers group exercise classes such as yoga, weight training, and boxing alongside standard gym facilities. Cult Neo represents the company's premium gym format. Additionally, proceeds will be used for debt repayment, lease-related payments, opening new Cultsport retail outlets, and boosting marketing and brand promotion expenditures. General corporate purposes will also be funded.
Cultsport outlets are company-owned stores selling the brand's athletic merchandise, further diversifying the company's revenue streams.
Financial Performance
For the fiscal year ended March 2026, Cult.Fit reported a net loss of Rs 251.8 crore, a significant improvement from the loss of Rs 480.8 crore in the previous fiscal year. Revenue grew 41.6 percent to Rs 1,720.6 crore from Rs 1,215.5 crore. The services segment contributed 69.62 percent of operating revenue, while the products segment accounted for 30.38 percent.
Background and Leadership
Cult.Fit was co-founded by Mukesh Bansal, also the founder of Myntra. The company has attracted backing from marquee global investors including Temasek, Accel, and Schroders. The IPO is expected to provide an exit opportunity for early investors and fuel the company's next phase of growth in India's competitive fitness and active lifestyle sector.
