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Cult.fit picks bankers for Rs 2,500 Cr IPO

EntrackrEntrackr · 3m ago
Cult.fit picks bankers for Rs 2,500 Cr IPO
Medial

Fitness tech company Cult.fit has chosen banks to manage its upcoming IPO, according to a CNBC-TV18 report. The selected banks include Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley, and JM Financial. As per the report, the company plans to raise Rs 2,500 crore (nearly $300 million) through the IPO, which would value it at nearly $2 billion. To date, Cult.fit has raised over $670 million from investors including Zomato, Tata Digital, Temasek, Kalaari Capital, and South Park Commons, among others. In November 2021, Zomato invested $100 million to acquire a 6.4% stake in Cult.fit, valuing it at $1.56 billion at the time. Founded by Myntra co-founder Mukesh Bansal and Ankit Nagori, Cult.fit operates over 500 gyms across multiple cities in India. Apart from gyms, the company also runs Eat.fit, a healthy meal delivery service that contributes 24.5% of its revenue. While Nagori has already left Cult.fit to lead its hived-off cloud kitchen vertical, Curefoods, Bansal took on the role of the company’s executive chairman last year. The company also elevated its co-founder Naresh Krishnaswamy to the position of chief executive officer. As per TheKredible, Cult.fit reported a 33.6% increase in its operating revenue to Rs 927 crore in FY24 compared to Rs 694 crore in FY23. It reported a steady loss of Rs 535 crore in FY24, slightly up from Rs 534 crore in FY23.

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Cult.fit’s income crosses Rs 1,000 Cr in FY24, losses remain flat

EntrackrEntrackr · 7m ago
Cult.fit’s income crosses Rs 1,000 Cr in FY24, losses remain flat
Medial

Fitness tech company Cult.fit underwent a key leadership change in FY24 after promoting co-founder Naresh Krishnaswamy to CEO. He succeeds co-founder Mukesh Bansal, who transitioned to the role of executive chairman. While the company achieved over 30% growth in scale under the new leadership, the losses remain unchanged in the last fiscal year. Cult.fit reported a 33.6% increase in its operating revenue of Rs 927 crore in FY24 compared to Rs 694 crore in FY23. Revenue from fitness subscriptions, including flagship services like Cultpass and Cult.fit centers and platform services, accounted for 72.3% of the total revenue which increased by 46.6% to 670 crore. The sportswear and fitness equipment segment, operated under Cultsport and other operating services, contributed Rs 257 crore. Cult.fit reported a 62% decline in other income to Rs 100.45 crore in FY24 from Rs 265.36 crore in FY23 due to a plunge in Miscellaneous income which the company has not disclosed. However, Cultfit's total income stood at Rs 1,027 crore in FY24. Cult.fit operates on a hybrid fitness model combining digital offerings through its app and physical fitness centers across 300 cities in India. It provides subscription-based fitness plans (Cultpass) that grant access to gyms, group classes, and virtual training. When it comes to expenditures, employee benefit expenses contributed Rs 324 crore, including Rs 236 crore in salaries, and Rs 57 crore in employee share-based payments. While the cost of materials for Cult.fit grew by 19.6% to Rs 396 crore in FY24. Its advertising cum promotional cost grew by 40.3% to Rs 188 crore in FY24 while legal costs saw a surge of 57% to Rs 124 crore. Information technology, traveling, and other overheads took the overall cost up by 4.7% to Rs 1,563 crore in FY24 from Rs 1,493 crore in FY23. In the end, Cult.fit reported a steady loss of Rs 535 crore in FY24, slightly up from Rs 534 crore in FY23, driven by a decent increase in scale coupled with a decline in other income. Its ROCE and EBITDA margins stood at -21.5% and -22.8% respectively. Cult.fit managed to improve its expense-to-earning ratio to Rs 1.69 in the previous fiscal. Its current assets stood at Rs 1,232 crore with a cash and bank balance of Rs 349 crore in FY24. In January, Cult.fit laid off around 150 employees, stating that the decision was part of its regular annual operating planning process. To date, Cult.fit has raised over $670 million from investors including Zomato, Tata Digital, Temasek, Kalaari Capital, and South Park Commons, among others. Cult.fit has eventually followed the playbook that many dread, spending till most of the competition has been wiped out, or can't keep up. Losses finally stabilising even as growth continues indicates that the firm is well set for the next stage of the process, namely, tweaking prices and offerings to improve margins further. The unbelievable legal costs are a mystery, and one hopes to get clarity on that at some stage, but we sincerely hope it's a one off. Bigger firms have been built on those sort of costs. The acquisition of Gold Gym's India business back in 2021, or even the RPM Fit and associated brands after that pretty much guaranteed losses well into 2025, but Cult.fit could flex its muscles as it had the money in the bank. Now, it will probably look at a solid year of performance that, while cleaning out a significant part of its cash hoard, takes it closer to profitability and bigger things. The sportswear and fitness equipment business however, will remain a worry, considering the even more muscled up player in the market, French multinational Decathlon.

Voler Car Limited’s Rs 27 Cr SME IPO opens on February 12

EntrackrEntrackr · 5m ago
Voler Car Limited’s Rs 27 Cr SME IPO opens on February 12
Medial

Voler Car Limited is set to launch its SME initial public offering (IPO) on February 12, 2025, aiming to raise Rs 27 crore (approximately $3.2 million). According to the press release, the IPO comprises 30,00,000 shares with a face value of Rs 10 each, priced in the range of Rs 85-90 per share. The lot size for the IPO is 1,600 equity shares, requiring a minimum investment of Rs 1,44,000 for investors looking to participate. The SME IPO will be processed through the 100% book-building method. The IPO comprises 50% of the net issue for QIB, 35% for retail investors and 15% of the net issue for the NII segment. GYR Capital Advisors Private Limited is the Book Running Lead Manager of Voler Car IPO, while KFin Technologies Limited is the registrar to the issue. The IPO will be open from February 12, 2025 to February 14, 2025. The issue proceeds will be utilized for funding working capital requirements, general corporate expenses, and IPO-related costs. Founded in 2010 by Pawan Parasrampuria and Vikas Parasrampuria, Voler Car specializes in providing employee transportation services for large MNCs, IT, and ITeS companies across major Indian cities. As per its investor memorandum, the company operates a fleet of over 2,500 vehicles, completing 425,000 trips annually across nine cities in India. During the first six months of the ongoing fiscal year (H1 FY25), Voler Car Limited registered an operating revenue of Rs 21.49 crore with a positive bottom line of Rs 2.48 crore. However, they recorded a revenue of Rs 30.89 crore with a profit of Rs 3.56 crore during the previous fiscal year (FY24).

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