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

EntrackrEntrackr · 9m 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 posts Rs 1,216 Cr revenue and Rs 481 Cr loss in FY25

EntrackrEntrackr · 13d ago
Cult.fit posts Rs 1,216 Cr revenue and Rs 481 Cr loss in FY25
Medial

Fintrackr All Stories Cult.fit posts Rs 1,216 Cr revenue and Rs 481 Cr loss in FY25 Fitness tech company Cult.fit reported over 31% year-on-year growth in operating revenue for the fiscal year ended March 2025, while its losses narrowed by 10% to Rs 481 crore during the period. Mukul Manchanda 15 Dec 2025 16:06 IST Fitness tech company Cult.fit reported over 31% year-on-year growth in operating revenue for the fiscal year ended March 2025, while its losses narrowed by 10% to Rs 481 crore during the period, as the company gears up for an initial public offering (IPO). Cult.fit reported an operating revenue of Rs 1,215.5 crore in FY25 compared to Rs 926.6 crore in FY24, according to its consolidated financial statements filed with the Registrar of Companies (RoC). Revenue from fitness subscriptions, including flagship offerings such as Cultpass, Cult.fit centres, and platform services, accounted for 73% of total revenue which increased by 32.7% year-on-year to Rs 889 crore in FY25. The sale of products, including sportswear for men and women as well as other gym and fitness products, contributed Rs 326.4 crore to total revenue, with the segment’s revenue rising 27% compared to FY24. Cult.fit also earned Rs 56.5 crore from other income, including interest on current investments and miscellaneous non-operating sources, taking its total revenue to Rs 1,272 crore in FY25. Coming to expenses, employee benefit costs remained largely flat at Rs 347.4 crore in the last fiscal, including Rs 99.5 crore ESOP expenses. Meanwhile, Cult.fit’s cost of materials rose 31% year-on-year to Rs 521.5 crore in FY25, accounting for nearly 30% of the company’s overall expenses and remaining its largest cost centre. Spending on advertising and promotional expenses remained flat at Rs 202.9 crore in FY25, while depreciation and amortisation costs increased 12% year-on-year to Rs 237.6 crore. Legal and professional expenses, along with finance costs, added another Rs 120.9 crore and Rs 109.5 crore, respectively, to the company’s total expenses. Information technology, travel and other miscellaneous expenses pushed overall costs up by 12% year-on-year to Rs 1,751.6 crore in FY25. In the end, the Bengaluru-based firm’s losses declined by 10% to Rs 480.8 crore in FY25. Its ROCE and EBITDA margins stood at -24.02% and -15.54% respectively whereas its EBITDA (loss) stands at Rs 189 crore in the period. Cult.fit managed to improve its expense-to-earning ratio to Rs 1.44 in the previous fiscal. Its current assets stood at Rs 1,029.5 crore with a cash and bank balance of Rs 240.7 crore in FY25. According to startup data intelligence platform TheKredible, Cult.fit has raised over $675 million to date from investors including Accel, Temasek, Eternal (Zomato), Tata Digital and several others. The Tata Digital-backed company is reportedly aiming to raise Rs 2,500 crore through an initial public offering (IPO) at a valuation of around $2 billion, and has appointed Axis Capital, Jefferies, Goldman Sachs, Morgan Stanley and JM Financial as its bankers.

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

EntrackrEntrackr · 1y 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.

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