India’s fitness and wellness platform Cult.fit has received regulatory observations from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), moving the company a step closer to listing on the stock exchanges.
SEBI issued its final observations on October 12, 2026, after Cult.fit filed its draft red herring prospectus (DRHP) in July. The proposed IPO comprises a fresh issue of shares worth up to Rs 950 crore and an offer for sale (OFS) of up to 17.86 crore shares by existing shareholders. Media reports have put the potential overall issue size at around Rs 4,000 crore, although the final size and timetable have not been announced.
The fresh issue will provide capital to the business, while the OFS will allow existing shareholders to sell part of their holdings. SEBI’s observations are not an endorsement of the investment merits of the IPO, and the company must still complete the remaining steps before the public issue opens.
- How Cult.fit Plans to Use the IPO Proceeds
According to its draft documents, Cult.fit intends to use fresh-issue proceeds to establish new fitness centres, meet leasing and licensing expenses for identified centres, repay or prepay certain borrowings, open exclusive brand outlets, fund marketing and meet general corporate requirements.
Axis Capital, Goldman Sachs, Jefferies India, JM Financial and Morgan Stanley India are among the book-running lead managers to the issue.
The proposed listing would give public-market investors exposure to a business spanning physical gyms, digital fitness services and fitness products, while providing the company with another route to fund expansion.
- Revenue Grows 36% as Losses Narrow
Cult.fit reported revenue from operations of Rs 1,720.61 crore in FY26, up 36.3% from Rs 1,262.78 crore in FY25. Its net loss narrowed to Rs 251.8 crore from Rs 480.8 crore in the previous financial year, signalling an improvement in its financial performance even as it continued investing in growth.
As of March 31, 2026, the company operated 708 fitness centres across 77 Indian cities and had approximately 9.87 lakh paid fitness services members. Of its centres, 218 were company owned and operated, while the rest operated through franchisees or independent owners.
Fitness services contributed around 70% of revenue, with fitness products accounting for the remaining 30%. This mix gives Cult.fit multiple revenue streams, although expansion across physical locations also brings costs related to leases, staffing and centre operations.
- A Public Market Test for India’s Fitness Sector
Cult.fit’s proposed IPO comes as organised fitness businesses seek to expand beyond major urban markets and build recurring customer relationships. The company’s combination of gyms, digital services and products gives it a broader offering than a conventional gym operator.
However, investors will need to assess whether revenue growth can translate into sustained profitability. Key factors will include centre-level economics, customer retention, expansion costs and the company’s ability to improve margins while growing its network.
The IPO’s final valuation, issue price and launch date will be important in determining how public-market investors assess the company’s growth prospects against its remaining losses.
The Unicorn Magazine:- Editing by Deepak Kumar
