Whalesbook
Temasek Increases Stake as Cult.fit Eyes IPO
Health and wellness platform Cult.fit has secured about $47 million (₹440 crore) in its final private funding round before its planned Initial Public Offering (IPO). Lead investor Temasek, through its investment arm MacRitchie, increased its stake to approximately 11.88% in this Series G funding. The deal valued Cult.fit at $1.45 billion, a stable valuation despite a 31% rise in operating revenue to ₹1,216 crore in FY25. During the same period, the company reduced its losses by 10%, to ₹480.8 crore. Argus Partners advised Cult.fit, while Khaitan & Co represented Temasek.
IPO Preparations and Market Context
This Series G round is expected to be Cult.fit's last before it proceeds with its IPO. Investment banks including Goldman Sachs, Morgan Stanley, Axis Capital, Jefferies, and JM Financial have reportedly been appointed to manage the public offering. The company plans to raise around $300 million (₹2,500 crore) through the IPO, potentially valuing it near $2 billion. This timing comes as the digital health sector undergoes market adjustments. Global digital health funding saw a 9% rise to $28.8 billion in 2025, with a growing investor preference for businesses showing clear revenue and scalable models. Fitness and wellness startups attracted $2.0 billion in 2025, with notable funding rounds for competitors like HealthifyMe ($145 million), Fittr ($17 million and $3 million), and GOQii ($110 million).
Challenges and Investor Focus
The flat valuation in this funding round, despite Cult.fit's revenue growth, highlights investor focus on profitability. Today's investors prioritize businesses with a clear path to positive earnings, a challenge for hybrid models like Cult.fit that blend offline and online operations. The company's net losses, though reduced, were still substantial at ₹480.8 crore in FY25. The Indian digital health market, while set for growth, also faces saturation and intense competition. Cult.fit's ability to show consistent revenue growth and a clear strategy for profitability will be key to reaching its desired $2 billion IPO valuation. Its comprehensive hybrid model also brings complexities in cost and operational management compared to purely digital rivals.
Outlook for Public Markets
Having secured its latest private funding and with IPO preparations advancing, Cult.fit is entering a transformative phase. Strong revenue growth and Temasek's expanded investment signal stakeholder confidence. The company's next steps involve a successful public offering and proving its ability to achieve profitable growth in public markets. The Indian health and wellness sector is projected to reach $257.94 billion by 2034, with digital health expected to grow significantly, providing a favorable market landscape for Cult.fit's ambitions.