Cult.fit Plans INR 2,500 Cr IPO, Shortlists 5 Bankers

The IPO is expected to value the Zomato-backed startup at approximately $2 Bn, reflecting a 28% increase from its last known valuation of $1.56 Bn.

Fitness and healthcare-focused startup Cult.fit has initiated plans for an IPO worth INR 2,500 Cr ($292 Mn), reportedly selecting Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley, and JM Financial to manage the offering.

The IPO is expected to value the Zomato-backed startup at approximately $2 Bn, reflecting a 28% increase from its last known valuation of $1.56 Bn.

Cult.fit, formerly known as Curefit, gained unicorn status in 2021 after Zomato invested $100 Mn for a 6.4% stake.

Other key investors include Accel, Tata Digital, Temasek, Kalaari Capital, and Chiratae Ventures.

Expansion in Healthcare & Fitness Services

Founded in 2016 by ex-Myntra cofounder Mukesh Bansal and ex-Flipkart CBO Ankit Nagori, Cult.fit operates a mix of digital and offline health and fitness services, including gym chains, at-home workouts, and group classes.

Its portfolio extends beyond fitness to include a health-focused cloud kitchen brand (Eat.fit), a mental wellness platform (Mind.fit), and a primary healthcare vertical (Care.fit).

Cult.fit has been expanding its gym presence across India through a franchise model, currently operating in 130 locations. The company rebranded from Curefit to Cult.fit, aligning its name with its most recognized brand.

Financial Performance &d Market Positioning

In FY24, Cult.fit recorded a 33.6% rise in operating revenue to INR 926.6 Cr, up from INR 693.7 Cr in FY23. However, its net loss widened by 42% to INR 888.5 Cr from INR 625.5 Cr in the previous fiscal year.

The IPO plans emerge as several startups prepare to go public amid positive market conditions. Data indicates that over 20 Indian startups, including Ather Energy, Ecom Express, and BlueStone, are lining up for stock market debuts this year. If successful, Cult.fit will become the first new-age fitness and healthcare tech company in India to be publicly listed.

The company still faces challenges before launching its IPO, particularly in managing its financial losses while sustaining business growth.