Cult.fit files DRHP for Rs 950 crore IPO to fund expansion

New Delhi: Fitness and wellness platform Cult.fit filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO), seeking to raise Rs 950 crore through a fresh issue of equity shares. The public issue will also include an offer for sale (OFS) of nearly 178.6 million shares by existing investors, including MacRitchie Investments, Fitness First Luxembourg, IDG Ventures, founder Mukesh Bansal, Tata Digital, Chiratae Ventures, Bruno Raschle, Schroders Private Equity and Accel. According to the DRHP, the proceeds from the fresh issue will be used to expand the company's fitness centre network, meet lease-related obligations, repay debt, strengthen marketing efforts and grow its Cultsport retail business. The company plans to allocate Rs 276.6 crore towards opening new fitness centres, Rs 217.5 crore for lease payments, Rs 120 crore for debt repayment, Rs 75 crore for marketing initiatives and Rs 23.4 crore for expanding Cultsport stores. The remaining proceeds will be used for general corporate purposes. Cult.fit, which operates across fitness centres, digital fitness, sports equipment, apparel and nutrition products, does not have an identifiable promoter and is professionally managed. Financial performance improves The company's financials indicate strong revenue growth alongside a steady reduction in losses over the past three financial years. Revenue from operations rose from Rs 926.7 crore in FY24 to Rs 1,215.5 crore in FY25, before reaching Rs 1,720.6 crore in FY26, representing annual growth of over 41% in the latest fiscal. Net loss narrowed significantly from Rs 888.5 crore in FY24 to Rs 480.8 crore in FY25, and further to Rs 251.9 crore in FY26. Loss before tax also reduced to Rs 249.9 crore in FY26 from Rs 888.1 crore two years earlier, indicating progress towards operational break-even. Services remained the company's largest revenue contributor, generating Rs 1,197.8 crore in FY26, or nearly 70% of total revenue. The products business, comprising fitness equipment, apparel and accessories sold through company-owned stores, online channels and marketplaces, contributed Rs 522.8 crore and accounted for just over 30% of revenue. The company said the faster growth in its products business reflects its evolution from a gym operator to a broader fitness and wellness brand. However, despite improving financials, Cult.fit continues to report losses and remains dependent on sustained membership growth, marketing investments and network expansion. The company also faces competition from local gyms, boutique fitness studios, digital fitness platforms and international brands, while lease commitments and expansion into Tier II cities could impact future profitability.