Breaking news: Zomato and Tata Capital backed fitness and wellness platform and gym chain operator Cult.fit is planning for an Initial Public Offering (IPO) to raise around Rs 2,500 crore (around $300 million) at a valuation of nearly $2 billion. The company has already finalized the investment bankers Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley and JM Financial for its IPO, according to the reports.
Cult.fit has been in talks for an IPO since 2022 but finally made a move now picking the book running lead managers. The IPO timeline still remains unclear.
Founded in 2015 by Mukesh Bansal and Ankit Nagori, Cult.fit first started as an integrated platform offering for fitness, nutrition and mental health services focusing on technology, accessibility and convenience. Initially users could book slots, track workouts, check nutrition plans and get mental health support through the Cult.fit platform but with time, the company expanded its offerings to offline medium too and started operating gyms. The company launched its first fitness centre in 2016 under Cult.fit brand and acquired Gold’s gym franchise rights in 2022. Presently Cult.fit has presence in over 580 gyms across the country.
The company also operates mental wellness brand Mind.fit, health food delivery brand Eat.fit, healthcare brand Care.fit and sportswear brand Cultsport.
The company had reported an operating revenue of Rs 927 crore in FY24, up from Rs 694 crore in FY23. The losses stood at Rs 535 crore in FY24 compared to Rs 534 crore in FY23.
The revenue from main offerings Cult.fit fitness centres and services and Cultpass accounted for 72.3% of the total revenue whereas Cultsport accounted for 30%. The care.fit and mind.fit brands accounted for smaller portions of the overall revenue.
Cult.fit has raised a total of $665 million over 13 rounds from investors that include the likes of Zomato, Tata Digital, Temasek, Kalaari Capital and Accel Partners among others and was valued at $1.47 billion as of 2024.