Cult.fit, a fitness and wellness platform supported by investors like Temasek, Tata Digital, Accel, and Kalaari Capital, has submitted its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO). The IPO includes a fresh share issue of up to Rs 950 crore and an offer for sale of up to 17.86 crore equity shares by current shareholders.
Despite reducing losses in recent years, Cult.fit has not yet achieved net profitability. While the company’s loss decreased to Rs 251.9 crore in FY26 from Rs 480.8 crore in FY25 and Rs 888.5 crore in FY24, it cautioned that past financial performance may not predict future growth.
The DRHP also mentions concerns raised by auditors regarding data controls at the company’s premium fitness centers and wellness studios. Auditors noted issues with maintaining daily backups of sales records and the operation of audit trails in third-party software.
One significant risk highlighted is Cult.fit’s heavy reliance on four major markets – Delhi-NCR, Mumbai, Bengaluru, and Hyderabad – which contributed 90.44% of revenue in FY26. The company also revealed that franchised and marketplace gyms made up a significant portion of its fitness centers, with limited control over operational and financial aspects.
Additionally, the filing disclosed delays in payment of statutory dues and pending litigations against the company’s subsidiaries and directors, amounting to around Rs 55 crore and Rs 488 crore, respectively.
