Cult.fit has filed its DRHP, targeting a ₹4,000 crore IPO heavily weighted towards existing shareholder exits. Its largest investor Temasek, co-founder Mukesh Bansal, and early backer Chiratae Ventures are selling a combined 6.88 crore shares. This significant offer-for-sale (OFS) component provides a crucial liquidity event for investors in a company still operating at a net loss.
How We Got Here
Cult.fit saw its operating revenue grow 42% to ₹1,720.6 crore in FY26, while nearly halving its net loss to ₹251.8 crore. The company plans to use the fresh ₹950 crore from the IPO to fund new centres and repay borrowings, following a period of rapid physical expansion to 708 centres.
The Numbers
- Temasek, through MacRitchie Investments, is Cult.fit’s largest shareholder with over 20% equity, selling 2.47 crore shares.
- Chiratae Ventures, the largest selling shareholder, will exit 2.81 crore shares held across two entities including IDG Ventures India Fund III LLC.
- Co-founder Mukesh Bansal, retaining over 8% stake, will offload 1.60 crore shares in the OFS.
- Accel, holding a 13.45% stake, plans to sell 65.32 lakh shares.
What Happens Next
🇮🇳 Why This Matters for India
For fitness-tech founders in Hyderabad and Pune, this IPO sets a critical valuation benchmark, indicating investor appetite for growth-stage exits in the sector.
The Take
This IPO looks less like a capital raise for aggressive expansion and more like a significant liquidity event for Cult.fit's early backers and co-founder. Public market investors, however, will be keenly watching the loss-making financials, demanding a clear path to profitability that justifies the valuation.
Source:
Inc42 ↗