Fitness platform Cult.fit has filed its draft papers for an IPO featuring a fresh issue of ₹950 crore. The funds will be used to repay debt, open new fitness centers, and support its subsidiary Cultsport. The company reported revenue of ₹1,720.61 crore for FY26 as it seeks to scale its physical presence across India.
Bengaluru-based fitness and lifestyle platform Cult.fit has officially submitted its draft red herring prospectus to the Securities and Exchange Board of India. The company intends to raise ₹950 crore through a fresh issue of equity shares, alongside an offer for sale by existing shareholders who plan to offload up to 17.86 crore shares.
Business Growth and Financial Performance
Cult.fit has shown a shift toward profitability in recent years. For the financial year ending March 31, 2026, the company reported revenue from operations of ₹1,720.61 crore, a 36.26% increase from the previous year's ₹1,262.78 crore. Notably, its adjusted EBITDA margin—a key measure of operating profitability—turned positive at 8.41% in FY26, compared to a negative 2.76% in FY25. As of March 2026, the company operated a network of 708 centers across 77 cities in India.
Capital Allocation and Debt Management
The company plans to use the proceeds from the fresh issue to pay down existing debt, which is expected to improve its balance sheet flexibility. A portion of the funds is dedicated to the expansion of its physical network, specifically targeting new locations for its 'Cult Elite' and 'Cult Neo' centers. Additionally, the company plans to invest in Cultsport Private Ltd. to launch new exclusive brand outlets. The remaining proceeds are intended for brand marketing, facility lease payments, and general corporate needs.
Market Position and Competitive Landscape
Founded in 2016 by Mukesh Bansal, Ankit Nagori, and Rishabh Telang, Cult.fit grew significantly through venture funding, reaching unicorn status in 2021. Major strategic investors, including Zomato and Tata Digital, have previously backed the company. While the fitness sector in India remains highly fragmented, Cult.fit faces competition from regional gym chains, boutique fitness studios, and digital health applications. Success for the company will depend on its ability to maintain its membership growth while managing the high fixed costs associated with physical gym operations and retail store expansion. Investors should note that the company's reliance on physical center growth carries risks related to real estate costs and the ability to maintain high utilization rates across its large network. The next stage of the process involves receiving observations from the regulator before the company can finalize the IPO timeline and pricing.