The Mukesh Bansal co-founded company has filed draft papers with Sebi, with existing shareholders also set to dilute stakes through an offer-for-sale
Fitness and active lifestyle platform Cult.fit has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO), comprising a fresh issue of equity shares worth Rs 950 crore and an offer-for-sale (OFS) by existing shareholders of up to 17.86 crore equity shares by existing shareholders.
The company clarified that the total IPO size has not been disclosed, while the OFS is estimated to be worth around Rs 3,000 crore.
Selling shareholders include Singapore-based Temasek Holdings-backed MacRitchie Investments, Fitness First Luxembourg, IDG Ventures India Fund, Tata Digital, Chiratae Trust, Schroders Capital, Twenty Nine Capital Partners and Accel India V (Mauritius), which together will offer up to 17.86 crore equity shares.
According to the DRHP, MacRitchie Investments is the company’s largest shareholder with a 20.32 per cent stake, followed by Accel at 13.45 per cent. Co-founder Mukesh Bansal holds 8.35 per cent, while Kalaari Capital owns 7.8 per cent. Eternal and Tata Digital hold 4.88 per cent and 3.58 per cent stakes, respectively.
Funds Earmarked For Expansion
The company said it intends to deploy Rs 276.6 crore from the fresh issue towards establishing new Cult Elite and Cult Neo centres. Another Rs 217.5 crore has been allocated for lease, rent and licence-related payments for identified existing centres.
Cult.fit also plans to use Rs 120 crore to repay borrowings, Rs 75 crore for brand-building initiatives and Rs 23.4 crore to expand the retail footprint of its subsidiary, Cultsport, through new exclusive brand outlets.
As of April 2026, the company’s consolidated outstanding borrowings stood at Rs 219.8 crore.
Revenue Grows, Losses Narrow
Cult.fit said it operates 708 fitness centres across 77 cities in India, offering fitness services and active lifestyle products through digital and offline channels. As of 31 March 2026, the platform had more than 987,000 paid members.
For the financial year ended 31 March 2026, the company reported a net loss of Rs 251.8 crore, compared with Rs 480.8 crore in the previous financial year. Revenue from operations rose 41.6 per cent year-on-year to Rs 1,720.6 crore from Rs 1,215.5 crore. The services business contributed 69.62 per cent of revenue from operations during FY26, while products accounted for the remaining 30.38 per cent.
The company proposes to list its equity shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JM Financial and Morgan Stanley India Company are the book-running lead managers to the issue.
