Cult.fit clears Sebi hurdle for IPO; proceeds to fund expansion, debt repayment

Cult.fit Ltd, formerly Curefit Healthcare Pvt Ltd, has received observations from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO), paving the way for the fitness and active lifestyle platform to proceed with its public issue.

The Bengaluru-based company filed its draft red herring prospectus (DRHP) on July 6, 2026. The proposed IPO comprises a fresh issue of equity shares worth up to ₹950 crore and an offer for sale (OFS) of up to 17.86 crore shares by existing shareholders.

The selling shareholders include Tata Digital, MacRitchie Investments, Fitness First Luxembourg, IDG Ventures India Fund III, Chiratae Trust, Schroders Capital Private Equity Asia Mauritius IV, Accel India V and Twenty Nine Capital Partners, along with individual shareholders Mukesh Bansal and Bruno Eduard Raschle.

Proceeds to fund expansion, debt repayment

Cult.fit plans to use the proceeds from the fresh issue to repay or prepay certain borrowings, establish new Cult Elite and Cult Neo fitness centres, and invest in subsidiary Cultsport Pvt Ltd to open exclusive brand outlets. The funds will also support lease-related payments for existing centres, brand marketing and general corporate purposes.

Founded in 2016 by Ankit Nagori, Mukesh Bansal and Rishabh Telang, Cult.fit offers gym memberships, trainer-led group classes, digital fitness services and fitness products. According to Tracxn, the company has raised around $714 million from investors, including Accel, Kalaari Capital and Chiratae Ventures, and has a valuation of approximately ₹12,600 crore.

Cult.fit entered the unicorn club in 2021 after raising $150 million in a funding round led by Zomato. Tata Digital subsequently signed a strategic agreement to invest up to $75 million in the company.

Revenue rises 36% to ₹1,721 crore in FY26

Cult.fit reported revenue from operations of ₹1,720.61 crore in FY26, up 36.26% from ₹1,262.78 crore in FY25. Revenue stood at ₹926.66 crore in FY24. Its adjusted EBITDA margin improved to 8.41% in FY26 from -2.76% in FY25, indicating an improvement in operating performance.

According to the Redseer report cited in its DRHP, Cult.fit was India's largest fitness and active lifestyle platform by the number of fitness centres as of March 31, 2026. It operated 708 centres across 77 cities, nearly four times the network of the next-largest player.

The company had 9.87 lakh paid fitness services members in FY26 and shipped more than 42.3 lakh fitness products. Fitness services accounted for around 70% of revenue, while products contributed the remaining 30%.

India's fitness services market was estimated at ₹25,600 crore in CY25 and is projected to reach ₹48,700-53,100 crore by CY30, growing at a compound annual growth rate of 14-16%, according to Redseer.

The fitness products market, estimated at ₹1.16 lakh crore in CY25, is projected to expand to ₹2.18-2.35 lakh crore by CY30.

Cult.fit is betting on technology, including personalised workout recommendations, AI-driven decision-making and capacity optimisation, to improve customer engagement and operating efficiency as it expands its physical network and product portfolio.