Cult.fit plans ₹4,000cr IPO this month
What's the story
Cult.fit, India's leading fitness services provider, is gearing up to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) worth ₹3,500-4,000 crore this month, as per Moneycontrol. The move comes as the company continues its strong financial performance. The upcoming IPO will comprise both a fresh issue and an offer for sale (OFS) by existing shareholders.
Business model
Strong revenue growth and profitability milestones
Founded in 2016, Cult.fit offers a multi-format fitness platform that includes gyms, group workouts, outdoor formats, at-home workouts, and fitness products like apparel and equipment. The company has reported strong revenue growth with its revenues crossing ₹1,700 crore at a 40% year-on-year growth rate. Cult.fit has also turned EBITDA positive in the last quarter of FY26 with double-digit EBITDA improvement.
Revenue sources
Diversified business model with balanced revenue streams
Cult.fit's business model features a diversified revenue profile, with fitness services accounting for about 70% of revenues and the fitness products business making up the remaining 30%. This gives the company a balanced mix of recurring and transactional income streams. The company had a transacting base of one million paid subscribers across over 75 cities in FY26 for its fitness services business.
Strategic moves
Preparations for IPO underway with board appointments
Ahead of its DRHP filing, Cult.fit has appointed Kalpana Morparia, Arun M Kumar, Indu Bhushan, and Pragya Misra as independent directors to its board. The company has also been associated with Hrithik Roshan as its brand ambassador. Axis Capital, Goldman Sachs, Jefferies, JM Financial, and Morgan Stanley are advising the company on this upcoming IPO.