CultFit IPO: Forming a Conviction Without the Numbers
Formed an independent investment view on CultFit's upcoming IPO using macro data, product experience, and market analysis when financial comparables were unavailable
Kasak Agarwal
Tutor at U&I Trust
Overview
When CultFit's IPO began generating buzz, Kasak was already a regular user of the product. She had been to other gyms and had a direct basis for comparison. When she read analyst commentary suggesting the valuation could not be justified because there were no publicly listed comparables and the company had only just turned profitable, she disagreed.
The Story
When CultFit's IPO began generating buzz, Kasak was already a regular user of the product. She had been to other gyms and had a direct basis for comparison. When she read analyst commentary suggesting the valuation could not be justified because there were no publicly listed comparables and the company had only just turned profitable, she disagreed.
Her conviction rested on three things. First, she looked at gym penetration rates across the US and India, reading the gap as a structural underpenetration story rather than a ceiling on the market.
Second, she assessed the product differentiation. CultFit integrates strength training, yoga, dance, and branded workout formats into a single platform and physical network. She had experienced this directly and found no comparable offering in the Indian market.
Third, she tracked the growth of India's fitness market through LinkedIn posts, keyword searches, and AI-sourced data, always asking for cited sources. She observed that fitness tech was emerging as a category in its own right.
Her view was that when financial comparables are absent and the company has just turned profitable, the conviction has to come from the market size, the product, and the founder's vision. She held that view against the analyst consensus that the valuation was unjustifiable.