Cult.fit Shortlists Five Bankers For INR 2,500 Cr IPO

SUMMARY

The Zomato-backed startup has shortlisted Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley and JM Financial to helm its INR 2,500 Cr ($292 Mn) public offering

The IPO is likely to value the startup at $2 Bn, a near 28% jump from its last known valuation of $1.56 Bn

In FY24, Cult.fit's (erstwhile Curefit) operating revenue soared 33.6% to INR 926.6 Cr from INR 693.7 Cr in FY23

Adding to the list of startup unicorns eyeing IPOs, fitness unicorn Cult.fit has reportedly initiated its bid to become a publicly listed company.

As per a CNBC-TV18 report, the Zomato-backed startup has shortlisted Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley and JM Financial to helm its INR 2,500 Cr ($292 Mn) public offering.

The IPO is likely to value the startup at $2 Bn, a near 28% jump from its last known valuation of $1.56 Bn. The startup attained the unicorn tag in 2021, when Zomato invested $100 Mn in it to acquire a 6.4% stake.

Besides Zomato, it counts Accel, Tata Digital, Temasek, Kalaari Capital, Chiratae Ventures, among others, as its investors. Cult.fit has raised a total funding of over $650 Mn to date.

Founded in 2016 by ex-Myntra cofounder Mukesh Bansal and ex-Flipkart CBO Ankit Nagori, Cult.fit offers a variety of digital and offline health and fitness services, including gyms, at-home workouts and group classes.

Beside its chain of gyms, the startup’s portfolio includes brands like health-focussed cloud kitchen brand Eat.fit, mental wellbeing platform Mind.fit, primary healthcare vertical Care.fit, among others.

The startup was known as Curefit at the time of its inception, with the gym chain known as Cult.fit. It was renamed to Cult.fit from Curefit as the former had become synonymous with the startup.

In 2020, its cofounder Nagori quit the startup. After leaving Cult.fit, he founded foodtech unicorn Curefoods in the same year.

Cult.fit has been working on expanding its gyms across the country via a franchise model. As of now, it claims to be present across 130 locations in the country.

On the financial front, the startup has seen a steady growth in its top line in recent times. In FY24, its operating revenue soared 33.6% to INR 926.6 Cr from INR 693.7 Cr in FY23. Meanwhile, its consolidated net loss widened 42% to INR 888.5 Cr from INR 625.5 Cr in the previous fiscal year.

Why Is Cult.fit Lining Up IPO Plans?

The development comes at a time when a host of new-age tech companies are looking to list on the bourses amid largely positive market cues and growing investor appetite for new-age startups.

As per Inc42 data, more than 20 startups are looking to make their market debut this year. While the likes of Ather Energy, Ecom Express, ArisInfra, and BlueStone have already filed their draft red herring prospectus (DRHP), many others are in various stages of their IPO preparations.

If the plans materialise, Cult.fit will become the first Indian new-age tech fitness company to list on the bourses. While it still has a long path to an IPO, it will have to get many things in order before making a market debut, including reining in losses while sustainably growing its business.