Fitness Unicorn Cult.fit Begins Rs 2,500 Crore IPO Journey, Picks 5 Bankers

Fitness unicorn Cult.fit has reportedly begun its process to become a publicly listed company, according to a report published by CNBC-TV18. The Zomato-backed start-up has picked up five bankers, including Goldman Sachs, Morgan Stanley, Jefferies, Axis Capital, and JM Financial.

The new-age fitness brand which has got the unicorn tag in 2021 is likely to launch its Rs 2,500 crore IPO at a valuation of $2 billion. In 2021, Deepinder Goyal-led Zomato had invested $100 million to acquire over 6% stake in the company. Besides Zomato, Cult is also backed by investors like Accel, Kalaari Capital, Tata Digital, Temasek, Chiratae Ventures, and others. So far, it has raised more than $650 million from these investors.

Founded by former Myntra cofounder Mukesh Bansal and ex-Flipkart chief business officer Ankit Nagori in 2016, Cult.fit is a new-age fitness and wellness brand offering a mix of digital and offline services, including gyms, at-home workouts, and group classes.

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The start-up has also built a diversified portfolio of wellness offerings under brands such as Eat.fit, Mind.fit, and Care.fit, among others. Originally launched as Curefit, the company rebranded to Cult.fit as the gym brand gained stronger recall and became synonymous with the broader business.

In 2020, cofounder Ankit Nagori exited the company and went on to launch foodtech unicorn Curefoods later that year. Cult.fit has since been actively expanding its footprint through a franchise-led model and currently claims a presence across 130 locations across the country.

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Cult.fit FY24 Performance

In FY24, the fitness start-up has witnessed over 33% growth in its operating revenue, reaching to Rs 926.6 crore from Rs 693.7 crore in FY23. And the company’s net loss widened 42% to Rs 888.5 crore from Rs 625.5 crore in the previous fiscal year.

Meanwhile, Cult.fit also reported a 62% decline in other income to Rs 100.45 in FY24 from Rs 265.36 crore as compared to its previous year. The company attributed this fall to miscellaneous income which it has not disclosed. However, Cult’s total income was Rs 1,027 crore in FY24.