The fitness company Cult.Fit has filed a draft document with the Securities and Exchange Board of India for an Initial Public Offering (IPO). The plan is to raise 950 crore rupees by issuing new shares.
The fitness company Cult.Fit has filed a draft document with the Securities and Exchange Board of India for an Initial Public Offering (IPO). The plan is to raise 950 crore rupees by issuing new shares.
Concurrently, several early investors and existing shareholders plan to partially exit the company through an Offer for Sale (OFS). According to the draft prospectus, the funds from the additional issuance will primarily be directed towards expanding the Cult.Fit fitness center network, covering rental obligations, debt repayment, supporting marketing campaigns, and developing the Cultsport retail business.
Specifically, approximately 276.6 crore rupees are allocated for opening new centers, 217.5 crore rupees for rent-related payments, 120 crore rupees for debt repayment, 75 crore rupees for marketing, and about 23.4 crore rupees for expanding Cultsport stores.
Unlike many recent IPOs where the majority volume consisted of fresh capital, Cult.Fit's public offering also includes a significant volume of OFS—approximately 178.6 million shares. This allows long-term investors to monetize part of their investments while the company secures new funds for expansion. Among the largest asset sellers are MacRitchie Investments, supported by Temasek, Fitness First Luxembourg, IDG Ventures, founder Mukesh Bansal, Tata Digital, Chiratae Ventures, Bruno Raschle, Schroders Private Equity, and Accel.
The company does not have an identified promoter and is professionally managed, which is a common practice among technology and consumer enterprises backed by venture capital funds.
The company's financial statements indicate that Cult.Fit has entered a new phase of development. Revenue has shown rapid growth over the last three fiscal years, while losses have significantly decreased. Operating revenue increased from 926.7 crore rupees in FY24 to 1,215.5 crore rupees in FY25, and then to 1,720.6 crore rupees in FY26. Annual growth exceeded 41% in the last fiscal year.
Net loss decreased from 888.5 crore rupees in FY24 to 480.8 crore rupees in FY25, and further to 251.9 crore rupees in FY26. Improvement is also visible at the operational level: earnings before tax decreased from 888.1 crore rupees in FY24 to 249.9 crore rupees in FY26, indicating a steady transition toward the break-even point, although profitability has not yet been achieved.
The composition of revenue also reveals the evolution of the business. Services remain the main segment, generating 1,197.8 crore rupees in FY26, accounting for almost 70% of total income. The products segment, which includes sports equipment, apparel, and accessories sold through owned stores, online channels, and marketplaces, generated 522.8 crore rupees, making up just over 30% of revenue. Notably, the product business grew faster than services during the year, suggesting that Cult.Fit is becoming a broader consumer fitness brand, rather than just a gym chain.
The company's balance sheet also reflects the economics of a large physical network. Total assets as of March 2026 amounted to approximately 3,103 crore rupees, including significant right-of-use assets arising from leased fitness centers and goodwill from previous acquisitions. Cash and cash equivalents increased to approximately 235 crore rupees compared to 93 crore rupees a year earlier, strengthening liquidity ahead of further expansion.
Cult.Fit claims to hold a leading position in India's organized fitness ecosystem. According to the DRHP, as of March 2026, the company was the largest provider of fitness services in the country, operating more than four times as many centers as the second-largest player. Furthermore, in FY25, it generated 14–18 times more revenue than the second-largest fitness service company and held an approximate 4–6% share in the fragmented Indian fitness services market.
The company also notes changes in consumer behavior: nearly 46% of its paid users were newcomers to gyms upon joining the platform, and about a third of its paid base are women, indicating the expansion of organized fitness beyond the traditional customer profile.
Despite significant growth opportunities, the DRHP also highlights risks associated with the investment. The company continues to record losses despite strong revenue growth. Investors need to assess whether the current trend of improvement can ultimately lead to sustainable profitability.
Another important aspect is the cost structure. Operating a large number of leased fitness centers creates fixed financial obligations regardless of utilization levels. If membership growth slows down or discretionary consumer spending weakens, these rental obligations could negatively impact profitability. The company is also dependent on continuous investment in marketing, technology, and center expansion to sustain growth.
Competition presents another challenge. The Indian fitness industry remains fragmented, with organized chains competing against local gyms, boutique studios, franchisees, digital fitness platforms, and international brands. The DRHP points out that expansion into Tier 2 cities may require longer customer acquisition cycles, greater price sensitivity, and slower payback periods. Maintaining consistent service quality across a growing network is also an operational challenge. The company additionally identifies potential regulatory changes, compliance requirements, and increasing competitive intensity as factors that may affect future results.