The Cult.fit Premium, Skyroot Creates History, and Snapdeal’s Legal Woes

Cult.fit’s proposed IPO valuation of nearly ₹17,000 crore looks difficult to justify. The company has improved its operations, but public investors are being asked to value it as though the turnaround is complete, even though the business is still dealing with the consequences of its earlier expansion.

The headline numbers are encouraging. FY26 revenue rose 41.6% to ₹1,720.6 crore, adjusted EBITDA turned positive at ₹144.8 crore, and the net loss narrowed to ₹251.9 crore. However, adjusted EBITDA does not show the full cost of running the business. Cult.fit still carries ₹889 crore in lease liabilities, nearly ₹220 crore in bank debt and around ₹227 crore in depreciation and amortisation. Its centre-level economics have improved, but the company has not yet demonstrated consistent profitability after all of its costs are included.

The proposed use of IPO proceeds reinforces that concern. Of the ₹950 crore fresh issue, ₹217.5 crore will be used for existing rent and lease obligations, while another ₹120 crore will go toward repaying debt. More than one-third of the new capital will therefore be used to address earlier commitments rather than fund expansion or product development. This is primarily balance-sheet repair, not growth capital.

At ₹17,000 crore, Cult.fit would be valued at almost ten times FY26 revenue. That kind of multiple is easier to defend for a capital-light software company with high margins, low churn and predictable cash flows. Cult.fit remains a physical fitness business. Its performance depends on gym utilisation, trainer productivity, membership renewals and the company’s ability to manage leases carefully.

The company’s geographic footprint also needs closer examination. It operates 708 centres, but more than 90% of fitness-services revenue comes from Delhi-NCR, Mumbai, Bengaluru and Hyderabad. Cult.fit has a national brand, but its business remains concentrated in four large cities. Expanding into smaller cities may be more difficult because local gyms operate with lower costs and customers tend to be more price-sensitive.

Franchising offers the clearest route to better returns. Around 69% of centres are franchised or marketplace-operated, which can reduce capital requirements. However, this model also gives partners more influence over day-to-day execution. Poorly managed centres could affect customer experience and weaken the brand.

Cultsport does not completely resolve the concern. It contributes about 30% of revenue but brings inventory and working-capital risks, along with a 38.6% dependence on Chinese procurement.

Existing investors may reasonably use the offer-for-sale portion for partial liquidity. New investors, however, should be cautious near ₹17,000 crore and consider the company only at a valuation closer to its last private mark of ₹12,600 crore. Cult.fit has made real progress, but the IPO appears to assume that the turnaround is already finished.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Waah Kya Scene Hai”: Skyroot Creates History With India’s First Private Orbital Rocket Launch

India's spacetech story just reached a whole new level as Skyroot became the first private Indian company to successfully launch an orbital rocket with Vikram-1.

The historic Mission Aagaman placed multiple customer payloads into a 450-km Low Earth Orbit while proving the rocket's key systems work as planned. It's a landmark moment that opens the door for Indian startups to compete in the global satellite launch market.

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“Haal Kaisa Hai Janab Ka”: Supreme Court Seeks Snapdeal’s Reply In Prescription Drug Sale Case

Snapdeal is back in the legal spotlight as the Supreme Court has asked the ecommerce platform to respond in a case involving the alleged sale of a prescription drug without a valid licence or doctor's prescription.

At the heart of the dispute is whether online marketplaces can claim safe harbor when third-party sellers break public health laws.

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“Maamla Legal Hai”: BYJU’S Inches Closer To Resolving Aakash Dispute After Creditors’ Nod

BYJU'S may finally be nearing the end of its long-running Aakash dispute after creditors approved a settlement proposal.

The deal could give lenders around a 30% stake in Aakash while ending legal proceedings against founder Byju Raveendran. The NCLT will hear the matter on August 18, making it a key date for the edtech giant's future.

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“Sapne Dekhe Bade Bade”: MakeMyTrip Files Confidentially For India IPO

MakeMyTrip has confidentially filed for an India IPO, with its US parent and Singapore arm set to sell part of their stake through an offer for sale.

If successful, it will become only the second travel-tech firm after Yatra to be listed in both the US and India. The company also plans to use the proceeds to strengthen its business and pursue acquisitions.

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“Jab Miya Bibi Ho Raazi”: Kissht Receives Certification For Mutual Fund Distribution

Kissht is expanding beyond lending after its subsidiary Invincible Minds received approval to distribute mutual funds in India.

The move marks the fintech's entry into wealth management as it looks to diversify its offerings. It's another sign of lenders building broader financial services platforms beyond credit.

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“Chennai Se Aaya Mera Dost”: Raptee.HV Enters Bengaluru

Raptee.HV has entered Bengaluru, marking its first expansion outside its home market of Chennai. The EV maker has opened a new experience center where customers can explore its T30 electric motorcycle, take test rides, and access aftersales support.

The move signals the start of its broader expansion plans across India.

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“Hum Saath Saath Hai”: Zithara.AI Forms Partnership With Palmonas

Zithara.AI has partnered with jewelery brand Palmonas to power smarter customer engagement across its retail stores.

Its AI-driven CRM platform will unify customer data, enable personalized communication, and automate engagement. The goal is to improve customer retention and drive more repeat purchases.

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“Purana Saal Naya Maal”: Khosla Ventures Backed upliance.ai Launches AI-Powered 12L Smart Oven

Khosla Ventures-backed upliance.ai has expanded its smart kitchen lineup with a new 12L AI-powered Smart Air Fryer Oven.

The appliance uses its proprietary Texture Control technology to cook food based on the desired texture instead of just time and temperature. It's now available through the company's website, Amazon, and select retail stores.

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1. Neo Group has raised ₹350 Cr in fresh funding led by Peak XV Partners, just weeks after securing ₹550 Cr from TVS Capital. The wealth management firm plans to use the capital to strengthen its technology, expand its team, and launch new products.

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2. Climate-focused deeptech startup Ecozen is set to raise ₹125 Cr in debt financing through non-convertible debentures, with participation from Rajiv Poddar, Indel Money, InCred Finance, and others. This comes after the company secured ₹95 Cr in debt funding earlier this year.

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3. Naturis Cosmetics has raised ₹100 Cr in its maiden funding round led by Sharrp Ventures, with participation from Mirabilis Investment Trust, Anicut Capital, Niveshaay, and angel investors. The investment marks a major boost for the beauty and personal care contract manufacturer.

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4. Groyyo has raised Rs 90 Cr in the first close of its Rs 200 Cr Series B round led by Cornerstone Ventures. The AI-driven fashion manufacturing platform will expand manufacturing hubs and strengthen its design and trend forecasting tech.
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