Cult.fit Files DRHP for IPO, Seeks INR 950 Cr via Fresh Issue

Cult.fit is the latest Indian startup to pursue an IPO as the Tata Digital-backed health and fitness platform has filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). 

The proposed IPO features a fresh issue of up to INR 950 crore and an offer-for-sale of up to 178,609,200 equity shares of face value of INR 1. The filing reveals Temasek-affiliate MacRitchie Investments, Tata Digital, and cofounder Mukesh Bansal are among the top 10 selling shareholders. 

Axis Bank, Goldman Sachs, Jefferies, Morgan Stanely, and JM Financials have been roped in as book keeping managers. 

According to filing, the company will deploy INR 217.5 crore of IPO proceeds towards lease and rental payments for fitness centres. It will invest INR 120 crore for repayment or prepayment of borrowings. Another INR 75 crore has been earmarked for marketing and business promotion purposes, while the remaining capital will be used for corporate purposes. 

Founded in 2016 by Bansal and Ankit Nagori, Cult.fit runs more than 700 fitness centres across India. Over the years, it has acquired the likes of Gold’s Gym India, Fitternity, and Tread among others. 

To date, the company has raised USD 714 million across different funding rounds. Other prominent investors in the company include Zomato, Chiratei, Kalaari Capital, and Accel. 

Separately, RentMojo, an online rental and subscription-based platform for home appliances and furniture, has received the SEBI nod to launch an IPO. The company is looking to raise 150 crore from a combination of fresh issue and offer for sale.