Cult.fit files documents with SEBI for IPO to raise up to ₹950 crore

Cult.fit, a company engaged in fitness and wellness, has submitted a draft document to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). This offering could potentially allow the company to raise up to ₹950 crore in new capital as it seeks to capitalize on the growing demand for health and wellness services in India.

Structure and Volume of the Offer

The offering will include both a fresh issue of shares and an Offer for Sale (OFS) from existing investors. According to sources familiar with the matter, the total IPO size could reach ₹4,000 crore. The OFS component is planned to involve the sale of up to 178.6 million shares by current investors.

Sale Participants and Shareholders

Among the sellers are investors such as Temasek, Fitness First Luxembourg, Chiratae Ventures, Tata Digital, Accel India, Kalaari Capital, and Schroders Capital. Additionally, co-founder Mukesh Bansal, business angel Bruno Raschle, and actor Hrithik Roshan are selling shares. Other sellers include Doli Trading and Investments, a structure owned by promoter Asian Paints, hotel company Sun N Sand Hotels, fund Sateesh Andra, founder of Endiya Partners, the family trust of Ananth Narayanan, former CEO of Myntra, and Hrithik Roshan's investment arm, Extreme Brands.

Company Stakes

MacRitchie Investments is the largest shareholder in Cult.fit, holding 20.3 percent of the shares. It is followed by Accel with a 13.5 percent stake, co-founder Mukesh Bansal with 8.4 percent, and Kalaari Capital with 7.8 percent. Eternal and Tata Digital hold 4.9 and 3.6 percent, respectively.

Planned Use of Funds

The funds raised from the IPO are planned to be used for debt repayment and expansion of the Cult Elite and Cult Neo fitness centers. Investments are also planned for new Cultsport retail outlets, covering rental expenses, increasing marketing and branding expenditures, and general corporate needs. Cult Elite combines traditional gyms with group classes led by trainers, such as yoga, strength training, and boxing, while Cult Neo represents the company's premium gym format. Cultsport stores are the company's proprietary retail points where brand merchandise is sold.

Company Metrics and Growth

As of March 31, 2026, Cult.fit is the largest fitness and active lifestyle platform in India, operating 708 fitness centers across 77 cities, according to Redseer data. In the fiscal year 2026, the company had nearly 987,000 paying fitness members and supplied over 4.2 million fitness products. Revenue from fitness services accounted for about 70 percent of revenue, while fitness products made up the remaining 30 percent.

Over the last two financial years, Cult.fit's revenue has more than doubled: it reached ₹1,721 crore in fiscal year 2026 compared to ₹927 crore in fiscal year 2024. The company also achieved a positive adjusted EBITDA margin of 8.4 percent in fiscal year 2026, up from a negative figure of 2.8 percent the previous year.

Growth Strategy and Market

The company's growth is attributed to its technology platform, which integrates fitness services with proprietary products. The company utilizes artificial intelligence and data analytics to personalize workouts, improve operational efficiency, and ensure a consistent experience across its network. Furthermore, the Cultsport brand sells apparel, footwear, fitness equipment, and accessories, targeting the mass premium segment in India.

According to a Redseer study, the Indian fitness services market, valued at approximately ₹25,600 crore in 2025, is expected to almost double by 2030, reaching between ₹48,700 and ₹53,100 crore, with a compound annual growth rate of 14 to 16 percent. The research firm attributes this growth to increased disposable income, heightened health awareness, and improved access to organized fitness platforms.

IPO Details and History

The shares offered in the Draft Red Herring Prospectus are planned to be listed on the BSE and NSE stock exchanges. The Book Running Lead Managers (BRLMs) for this issue include Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, JM Financial Limited, and Morgan Stanley India Company Private Limited. The original company, Cult, was founded in Bengaluru in 2015 by Rishabh Talang, offering a non-equipment-based fitness approach rooted in martial arts, yoga, and outdoor activities. In 2016, serial entrepreneur and Myntra co-founder Mukesh Bansal acquired a controlling stake and developed a broader platform around it.

According to Tracxn, Cult.fit has raised $714 million from investors to date, including Temasek, Accel, and Fireside Ventures. This year, Temasek increased its stake to 12 percent, investing ₹440 crore.

www.aajtak.inJune 26, 05:02

IPO Surge Expected in July: Major Companies Like SBI and Zepto Prepare for Market Debut

Investors are closely watching when a new opportunity for profit will appear in the stock market. Although the pace of the IPO market has slowed in recent months, the situation is changing with the arrival of July. Many large corporations have completed preparations for their IPO, which has reactivated the primary market.

Reasons for the Expected IPO Boom

According to the regulator SEBI and the Anand Rathi Research report, July promises to be a period of significant opportunities for investors. Market experts believe that the growth in domestic market stability and the strengthening of retail investor confidence have stimulated company enthusiasm, prompting major corporations to prepare for listing.

Key Players in the Market

Among the most notable participants on this list are three companies. SBI Funds Management is preparing to launch a mega-IPO aimed at raising about 12–13 thousand crore rupees. In the healthcare sector, the major player Manipal Health Enterprises plans to raise around 11 thousand crore rupees. Additionally, the quick commerce giant Zepto is projected to have an IPO valued at approximately 8 thousand crore rupees. These three companies together intend to raise a substantial amount of about 32 thousand crore rupees, and more than a dozen other companies in the queue increase the total target to over 45 thousand crore rupees.

Strong SEBI Pipeline

The prospects for the primary market remain very strong. Companies are actively competing to attract capital, and the regulator supports this process. According to official data as of June 19, 173 companies have received SEBI approval to conduct an IPO, and they potentially can raise about 2.7 lakh crore rupees. In addition to these, another 64 companies are awaiting their turn, indicating that this wave will not weaken anytime soon.

Return of Activity After Downturn

The beginning of 2026 was not very optimistic for the IPO market. Global tensions, the Iran War crisis, and the caution of foreign portfolio investors (FPIs) led to the suspension of new listings. Only 18 IPOs appeared in the country before April, and May was completely without market debuts. However, it was retail investors who contributed to changing this situation, steering the market in a new direction.

Strengthening Investor Confidence

According to analysts, amid these changes, investors prefer to choose companies with a solid foundation rather than weak enterprises. Liquidity is growing in companies that demonstrate potential for future growth. Despite the stagnation in foreign fund activity, confidence in the Indian market is recovering thanks to the capital of domestic investors.

Continuation of IPO Market Growth

Experts associated with the investment banking sector note that this listing process will accelerate in the coming weeks due to reduced global uncertainty and the strong foundation of the Indian economy. This new wave in July is a clear sign that the primary market has returned to its previous pace. Large placements and growing investor interest will play a decisive role in determining the direction of the entire stock market in the coming months.