Cult.fit gets SEBI nod for ₹950 crore IPO

What happened

SEBI approved Cult.fit’s proposal to go public on Friday, clearing the way for a mixed offering that includes a fresh issue of equity shares worth up to ₹950 crore and an offer‑for‑sale (OFS) of up to 17.86 crore shares by existing shareholders.

Who is involved

The Bengaluru‑headquartered fitness platform will list its shares on the BSE and the NSE. Lead book‑running managers include Axis Capital, Goldman Sachs (India), Jefferies India, JM Financial and Morgan Stanley India. The regulator’s observations were posted on SEBI’s website, confirming that the company has met the filing requirements.

Key numbers

• Fresh issue size: up to ₹950 crore (SEBI filing)
• OFS size: up to 17.86 crore shares (company prospectus)
• Centres: 708 across 77 cities as of 31 March 2026 (company data)
• Paying members: 987,020 in FY 2026 (company data)
• Revenue FY 2026: ₹1,720.61 crore, up 36.26% YoY (company filing)
• EBITDA margin FY 2026: 8.41% (company filing)
• Fitness‑services market size 2025: approx. ₹25,600 crore (Redseer estimate)
• Projected market 2030: ₹48,700 crore‑₹53,100 crore (Redseer)

How the funds will be used

Cult.fit says the fresh‑issue proceeds will be allocated to several priorities: repaying or pre‑paying borrowings, financing capital expenditure for new fitness centres, expanding its subsidiary Cultsport’s exclusive outlets, meeting lease obligations for existing sites, and supporting brand‑marketing and broader business promotion. A portion will also go to general corporate purposes.

Why it matters

The approval comes as India’s organised fitness sector accelerates, driven by rising disposable incomes and growing health awareness. Cult.fit’s network—now four times larger than the next biggest player—adds significant infrastructure to the country’s wellness ecosystem and creates jobs in construction, operations and digital services. The IPO also signals confidence in Indian consumer‑led businesses and adds another high‑growth company to the capital markets, reinforcing the nation’s reputation as a vibrant destination for investors.

What’s next

The company has not disclosed a price band or the exact timeline for the issue. Once the price is set, the book‑building process will commence under the guidance of the appointed managers, after which the shares will be allotted and listed on both exchanges.

Context

Cult.fit operates two flagship formats—Cult Elite and Cult Neo—offering memberships through its app, website, corporate partnerships and direct sales at physical centres. In addition to services, the firm sells apparel, footwear and equipment, contributing roughly 30% of its revenue from product sales.

Outlook

If the IPO proceeds as outlined, Cult.fit will have the capital to deepen its footprint in Tier‑2 and Tier‑3 cities, a move that aligns with the government’s push for health‑focused infrastructure outside metropolitan hubs. The listing will also broaden the investor base for a company that has become a household name in Indian fitness.