Cult.fit Gets SEBI Clearance For ₹950 Cr+ IPO

SEBI has granted approval for gym chain Cult.fit's ₹950 crore IPO, nearly three months after the company submitted its draft red herring prospectus (DRHP). SEBI issued its final observation on the offer documents on October 12, signaling its approval for the company to proceed with the public issue. Cult.fit filed its DRHP in July, and the IPO is expected to comprise a fresh issue of shares valued up to ₹950 crore and an offer for sale of up to 17.86 crore shares.

The total IPO size is likely to be around ₹4,000 crore. Early investors interested in participating in the OFS include Temasek Holdings, MacRitchie Investments, Schroders Capital, German fitness operator LifeFit Group, Accel, Tata Digital, and Cult.fit's cofounder Mukesh Bansal. The funds raised will be utilized for various purposes, including setting up new gym centers, leasing and licensing existing fitness centers, repaying certain borrowings, and marketing and promotional activities.

Cult.fit, founded in 2016, operates a chain of gyms and fitness centers, offering online classes for physical and mental wellbeing. As of March 31, 2026, the company operated 708 fitness centers across 77 cities in India and had over 9.87 lakh paid members. Out of these, 218 centers are owned and operated by the company, while the remaining 488 are owned or operated by franchises or independent owners.

The company's net loss narrowed to ₹251.8 crore in FY26 from ₹480.8 crore in FY25, and it posted an operating revenue of ₹1,720.6 crore, up 41.5% from ₹1,215.5 crore in FY25. Cult.fit's revenue is diversified, with fitness services contributing roughly 70% and the fitness products business accounting for the remaining 30%. The company has raised over $800 million to date from various investors, including Zomato, Accel, Kalaari Capital, Chiratae Ventures, and South Park Commons.