Cult.fit co-founder Rishabh Telang faces forgery and cheating allegations just weeks after the company filed its DRHP. The FIR, filed by former co-founder Deepak Poduval, reopens a 2016 asset transfer dispute involving an IPO-bound entity. This legacy dispute could complicate Cult.fit's path to public listing, raising questions for potential investors.
How We Got Here
Cult Fitness Pvt Ltd, founded by Poduval and Telang in 2015, transferred assets and IP to Cultfit Healthcare Pvt Ltd in 2016. This transfer included the 'Cult - The Workout Station' brand, with Cultfit Healthcare being a subsidiary of the current IPO-bound Cult.fit.
The Numbers
- Poduval alleges Telang forged his signature on documents to wind up Cult Fitness without authorization, as reported by Moneycontrol.
- Poduval also claims he did not receive payment from the 2016 transaction with Cultfit Healthcare.
- Telang denies involvement, citing multiple correspondences proving Poduval's full participation and receipt of consideration.
- Telang questions the FIR's timing, linking it to a July 1, 2026 property settlement lawsuit filed by his sister, who is also Poduval's wife.
- Cult.fit states it is not an accused entity and the 2016 acquisition occurred under valid contractual arrangements, with payment duly acknowledged.
What Happens Next
🇮🇳 Why This Matters for India
For founders in Bangalore and Pune considering early-stage asset transfers, this dispute highlights the critical need for watertight contractual agreements and clear founder exits.
The Take
This issue surfaces the messy underbelly of early startup M&A, where personal relationships often complicate legal separation. Cult.fit's IPO timeline will test how thoroughly investors vet past founder disputes, even when the current entity claims arms-length.
Source:
Inc42 ↗