Cult.fit has filed its draft papers for an IPO with a fresh issue of Rs. 950 crore, moving one step closer to the public market. For India’s startup world, this is an important moment. Cult.fit is not just another digital company looking for a listing. It is a fitness brand that has tried to mix offline workout centres, app-led memberships, sports products, and wellness habits into one business.

The company was founded in 2016 by Mukesh Bansal and Ankit Nagori. Bansal was already known for building Myntra, while Nagori had worked in India’s internet business space. Cult.fit began with a simple idea – make fitness more accessible, more structured, and less boring for urban Indians.

Now, with the IPO plan on the table, the larger question is clear. Can public market capital help Cult.fit move closer to its purpose of making regular fitness a part of everyday life?

Why the IPO filing matters

Cult.fit’s IPO is expected to include a fresh issue of Rs. 950 crore and an offer for sale of up to 178.6 million shares by existing investors and individual shareholders. The overall issue size may be finalized later, after the price band is set.

A fresh issue means the company gets new money. An offer for sale means existing shareholders sell part of their holdings. This difference matters because only the fresh issue portion directly supports the company’s business plans.

Cult.fit may also consider a pre-IPO placement of up to Rs. 190 crore. If that happens, the fresh issue size may be reduced by the same amount.

For a fitness company, this capital can be useful in a very practical way. Opening gyms and workout centres needs money. Rent, trainers, equipment, branding, technology, maintenance, and customer service all add up. Growth in this category is not as light as a pure software business. It needs physical spaces, local teams, and steady customer trust.

How Cult.fit plans to use the money

Cult.fit has given a clear plan for the fresh issue proceeds. It plans to use Rs. 276.6 crore to open new Cult Elite and Cult Neo centres. These are expected to support its physical fitness network across cities.

Another Rs. 217.5 crore is planned for lease, rent, and licence payments for identified existing centres. This is important because fitness centres depend heavily on good locations. A gym near a residential cluster, office hub, or metro route can attract more members than one placed in the wrong area.

The company also plans to use Rs. 120 crore to repay or prepay borrowings. Lower debt can reduce pressure on the business and improve financial flexibility.

Cult.fit has also set aside Rs. 75 crore for brand marketing and business promotion. In simple words, this can help the company reach more users and bring them into its centres, app, or product ecosystem.

Another Rs. 23.4 crore is planned for investment in Cultsport, its subsidiary, to open new exclusive brand outlets. Cultsport sells fitness equipment, accessories, apparel, and footwear. This gives Cult.fit a second growth line beyond gym memberships.

The business behind the brand

Cult.fit describes itself as India’s largest fitness and active lifestyle platform by number of centres, based on a third-party industry report cited in its draft papers. As of March 31, 2026, it had 708 fitness centres across 77 cities and 987,020 paid members.

Its network includes Cult-branded gyms, group workout centres, franchised gyms, marketplace gyms, and Gold’s Gym-branded centres.

This gives the company a mixed model. Some users may attend strength training classes. Some may prefer dance fitness, boxing, yoga, or gym workouts. Others may buy activewear or fitness products from Cultsport. This mix is useful because fitness habits are not the same for everyone.

For example, a 25-year-old working professional may join a group workout class because it feels more social. A 40-year-old may prefer a gym near home. A beginner may start with app-based tracking and later move to a centre. Cult.fit is trying to serve all these use cases under one brand.

How this can amplify Cult.fit’s aim and purpose

Cult.fit’s bigger purpose is not only to run gyms. Its real opportunity is to make fitness easier to start and easier to continue.

Many people in India want to get fitter, but they struggle with discipline, confusion, distance, and lack of motivation. A structured class, a nearby centre, a trainer, and a simple membership plan can reduce that friction.

The IPO money can help Cult.fit open more centres in existing and new markets. More centres mean users may not have to travel too far for workouts. In fitness, convenience matters. If a centre is 10 minutes away, people are more likely to go. If it takes 45 minutes, most people drop off.

The money can also help improve the product business. A person who joins a gym may also buy shoes, workout clothes, dumbbells, resistance bands, or accessories. If Cultsport grows well, Cult.fit can become more than a place to exercise. It can become a wider fitness lifestyle brand.

Debt repayment also supports the company’s purpose in a quieter way. A business with less financial pressure can focus more on service quality, centre experience, trainers, equipment, and customer retention.

Financial picture investors will study

Cult.fit’s numbers show strong growth, but also remind us that this is still a business in transition. For FY26, revenue from operations rose to Rs. 1,720.6 crore from Rs. 1,215.5 crore in FY25. Its loss reduced to Rs. 251.9 crore from Rs. 480.8 crore a year earlier.

The company also reported adjusted EBITDA of Rs. 144.8 crore in FY26, compared with an adjusted EBITDA loss in FY25. EBITDA is a measure many investors use to understand operating performance before items like interest, tax, depreciation, and amortization.

The fitness services business brought in most of the revenue, while the products business added the rest. The services side was profitable at the segment level in FY26, while the products business was still loss-making, though its loss reduced.

This gives investors both comfort and questions. The company is growing and losses are narrowing. But public market investors will still want to see a clear path to net profit.

Competitors and market pressure

Cult.fit competes with many kinds of players. On the gym side, it competes with local gyms, premium chains, club-style fitness centres, and international names such as Anytime Fitness. Since its network also includes Gold’s Gym-branded centres, the market comparison is not always simple.

On the digital and coaching side, it competes with fitness and nutrition platforms such as Fittr and Healthify. In products, Cultsport competes with sportswear and fitness brands, online marketplaces, and private labels.

The biggest competition, however, may be human behaviour. Many people buy fitness memberships and then stop going. So the company’s long-term success will depend on how well it keeps members active, engaged, and satisfied.

Conclusion with key takeaways

Cult.fit’s DRHP filing for an IPO with a Rs. 950 crore fresh issue is a major step for India’s fitness startup space. The company has built a large network of centres, a growing product brand, and a familiar name among urban fitness users.

The IPO money can help it open more centres, pay rent and lease costs, reduce borrowings, spend on brand building, and grow Cultsport outlets. If used well, this can support Cult.fit’s larger aim of making fitness more regular and accessible for Indian consumers.

Key takeaways

• Cult.fit has filed draft papers for an IPO with a fresh issue of Rs. 950 crore.
• The company was founded in 2016 by Mukesh Bansal and Ankit Nagori.
• It plans to use funds for new centres, lease payments, debt repayment, marketing, and Cultsport expansion.
• Cult.fit had 708 fitness centres across 77 cities as of March 31, 2026.
• Revenue grew in FY26, while losses narrowed.
• The company competes with gyms, fitness apps, nutrition platforms, and sports product brands.

Facts Input- 1, 2

Disclaimer –

This article is for informational and educational purposes only. It is not investment advice, stock recommendation, or financial guidance. Readers should study the official IPO documents and consult a certified financial advisor before making investment decisions. IPO investments are subject to market risks.