Zomato Backed Fitness Firm Cult.Fit Selects Bankers for ₹2,500 Crore IPO

As per news reports, Fitness and wellness platform Cult.fit, backed by Zomato, has selected a group of investment banks to manage its upcoming Initial Public Offering (IPO), as per recent reports. The company is looking to raise up to ₹2,500 crore through the issue, which is expected to value it at nearly $2 billion.

The appointed book-running lead managers include Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley, and JM Financial.

Background and Ownership

Cult.fit was founded by Mukesh Bansal and Ankit Nagori. In November 2021, Zomato acquired a 6.4% stake in the company for $100 million, valuing it at $1.56 billion at the time. Other notable investors include Accel Partners, which holds a 17.25% stake following a recent funding round. 

Additional stakeholders include Tata Digital, Temasek, Kalaari Capital, and Chiratae Ventures.

Revenue and Operations

For the financial year 2024, Cult.fit reported a topline of approximately ₹1,000 crore. The company currently operates over 500 gyms across Indian cities. However, its business spans more than just fitness centres.

Here’s a breakdown of the company’s revenue sources:

• Cultsport is the company’s direct-to-consumer business for fitness apparel and equipment.
• Eat.fit is a healthy meal delivery service.
• Mind.fit focuses on mental wellness and yoga-related offerings.
• Care.fit includes healthcare services such as clinics and health check-ups.

Current Valuation 

The IPO is expected to push the company’s valuation close to the $2 billion mark. Cult.fit’s last known valuation was $1.56 billion during Zomato’s investment in 2021.

Conclusion

With its bankers in place and a ₹2,500 crore target, Cult.fit is preparing for a public listing. The company’s diversified business model and investor backing position it as a notable entrant in the upcoming IPO pipeline. Other details are to be announced soon.

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