Cult-fit had a revenue of Rs. 927 cr and losses of Rs. 870 cr in fy24. the company has so far raised $650m/ Rs. 5000 cr. As per a mint report they are planning for an IPO at $2 b/ Rs. 17000 cr. The company feels it can grow 30% every year for the next several years. But at a P/E multiple of 30 also, the profits needs to be Rs. 570 cr annually!

Cult-fit had a revenue of Rs. 927 cr and losses of Rs. 870 cr in fy24. the company has so far raised $650m/ Rs. 5000 cr. As per a mint report they are planning for an IPO at $2 b/ Rs. 17000 cr. The company feels it can grow 30% every year for the next several years. But at a P/E multiple of 30 also, the profits needs to be Rs. 570 cr annually!

If I as an investor wants to invest in a VC fund that plans to invest in cult-fit, then there are criteria that i have to meet. SEBI wants to ensure that I understand the risk and that I have a certain net-worth to take such risks. But if such companies get listed, obviously its open to all.

I still seriously feel, that there should be a separate counter for such companies. Secondary sales and transactions are certainly desirable and needed in the system but retail investors probably shouldn't get involved.

This post was originally shared by on Linkedin.