Fitness unicorn Cult.fit has taken a significant step towards public listing by filing its draft red herring prospectus (DRHP) to raise over ₹950 crore through an initial public offering (IPO). The total IPO size, including the Offer for Sale (OFS) component, is expected to be around ₹4,000 crore. This move marks a pivotal moment for the company, as it seeks to tap into public markets to fuel its expansion and operational strategies.
### Cult.fit’s Journey and Business Model
Cult.fit was founded in 2016 by Rishabh Telang, Deepak Poduva, Ankit Nagori, and Mukesh Bansal, who is also a co-founder of Myntra. The company has built a robust presence in India’s fitness domain, operating 708 fitness centres across 77 cities and boasting over 9.87 lakh paid members as of March 2026. While the co-founders no longer hold executive positions, the company is led by CEO Naresh Krishnaswamy.
Cult.fit’s business model is multifaceted, relying on both offline and online avenues. It operates a mix of company-owned, franchised, and independently owned fitness centres. Additionally, the company generates revenue from active lifestyle products such as fitness equipment, apparel, and accessories, with 70% of these sales occurring online. Cult.fit is also expanding its physical retail footprint, planning to open 30-35 new stores this fiscal year.
### The Competitive and Funding Landscape
Cult.fit’s IPO comes amidst a challenging yet promising environment for Indian startups. The fitness industry in India has witnessed a surge in demand, driven by increased health awareness and a growing middle class. Competitors like Gold’s Gym and Talwalkars have also been expanding, but Cult.fit’s comprehensive digital and physical strategy sets it apart.
The IPO will see major shareholders like Temasek Holdings, Schroders Capital, and Tata Digital offloading shares. The funds raised will primarily be used for setting up new fitness centres, leasing existing facilities, and marketing, indicating a strong focus on scaling operations and brand visibility.
### Implications for India’s Startup Ecosystem
Cult.fit’s move to go public is indicative of the evolving maturity of India’s startup ecosystem, particularly in the wellness sector. The significant IPO size underscores investor confidence in the company’s growth prospects and the broader potential of India’s fitness market. This public listing could serve as a bellwether for other startups considering similar routes, especially those in consumer-facing sectors with strong market traction.
As the startup ecosystem in India continues to grow, access to public funding could become a more prominent path for mature startups seeking expansion capital. Cult.fit’s IPO could pave the way for similar companies to explore public markets as a viable option for raising funds.
With the IPO process underway, stakeholders will be keenly watching how Cult.fit performs in the public market. Investors will be particularly interested in how the company leverages the raised capital to enhance its market position and achieve profitability. The success of this IPO could encourage other fitness and lifestyle startups to contemplate similar strategies, potentially reshaping how Indian startups approach funding and growth.
