Upcoming IPO: Cult.fit files draft papers with SEBI to raise ₹950 crore via IPO

Cult.fit has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO).

The proposed IPO comprises a fresh issue of up to ₹950 crore worth of equity shares and an offer-for-sale (OFS) of up to 17.86 crore equity shares by existing shareholders. The company may also undertake a pre-IPO placement of up to ₹190 crore. If such a placement is completed, the size of the fresh issue will be reduced 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.

Among the selling shareholders, MacRitchie Investments, an affiliate of Temasek, will offload up to 2.47 crore shares, the largest portion of the OFS. Other shareholders participating in the sale include Fitness First Luxembourg, IDG Ventures India, Tata Digital, Chiratae Trust, Accel entities, Kalaari Capital, and Schroders Capital. Co-founder Mukesh Bansal will also sell up to 1.6 crore equity shares through the offer.

The company will not receive any proceeds from the OFS, with the entire amount accruing to the selling shareholders.

Cult.fit plans to utilise 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.

Company details

Founded in 2016 by Myntra co-founder Mukesh Bansal and Ankit Nagori, Cult.fit has evolved into one of India's leading health and fitness platforms, operating more than 700 fitness centres across the country alongside its Cultsport and Care.fit businesses.

The company's business is primarily driven by its fitness segment, which accounts for nearly 70% of total revenue and serves approximately 1 million paid active subscribers across more than 75 cities. Its direct-to-consumer (D2C) arm, Cultsport, accounts for the remaining 30% of revenue and shipped over four million units during FY26.

Cult.fit is estimated to have reported FY26 revenue of around ₹1,700 crore, reflecting nearly 40% year-on-year growth, supported by strong demand for its premium hybrid subscription plans. However, the company remains loss-making, having reported net losses in each of the past three financial years.

Ahead of its IPO filing, the company strengthened its corporate governance framework by appointing four independent directors to its board in line with SEBI requirements. The new appointees include veteran banker Kalpana Morparia, former KPMG India Chairman and CEO Arun M Kumar, former Ayushman Bharat CEO Indu Bhushan, and OpenAI India Public Policy Head Pragya Misra.

Cult.fit has raised more than $714 million across 16 funding rounds to date. It was last valued at around ₹12,600 crore (approximately $1.5 billion) following a $47.6 million Series G funding round in March 2026. In November 2021, Zomato acquired a 6.4% stake in the company for $100 million, valuing it at $1.56 billion. Other prominent investors include Accel, Tata Digital, Temasek, Kalaari Capital, and Chiratae Ventures.

Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India), Jefferies India, and JM Financial are the book-running lead managers to the issue, while MUFG Intime India has been appointed as the registrar.

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