Cult.fit IPO Faces Co-founder Dispute Over Brand Acquisition
By ThePip Desk
Cult.fit’s IPO plans are complicated by a co-founder’s dispute over the 2016 brand acquisition, alleging forgery and non-payment. Learn more.
A critical dispute has surfaced regarding the 2016 acquisition of the ‘Cult’ brand, directly impacting Cult.fit as it prepares for its initial public offering. Deepak Poduval, a co-founder of the original Cult Fitness business, is challenging the company’s account of how it obtained the brand and intellectual property.
This controversy comes as Cult.fit aims to raise up to Rs 950 crore through a fresh issue in its IPO.
The Allegations
Poduval asserts he never consented to transfer these key assets to CultFit Healthcare, nor did he receive any payment for them. He has demanded documentation of any acquisition, slump sale, or share transfer, stating he did not personally sign such agreements.
- Poduval alleges his signatures were forged on multiple corporate filings.
- He discovered these issues in May of this year.
- The filings included documents related to striking off the company, Cult Fitness.
The Counterclaims
Cult.fit maintains that the acquisition was properly documented with appropriate contractual arrangements. They state that consideration was duly paid and acknowledged by Deepak Poduval.
Rishabh Telang, who co-founded the original company with Poduval as equal shareholders, vehemently denies the forgery claims. Telang states Poduval was fully involved in the transactions with CultFit Healthcare and the winding-up of Cult Fitness, offering correspondence as evidence of his involvement and payment.
Legal Proceedings Underway
The dispute escalated with an FIR filed on August 6 at Bengaluru’s Bellandur police station against Rishabh Telang and Cult Fitness. Poduval is actively seeking accountability through legal channels.
- Neither Cult.fit nor CultFit Healthcare is named as an accused in the FIR.
- Cult.fit clarified that Cult Fitness was an independent entity without their ownership or management control.
Poduval plans to escalate the matter further to the National Company Law Tribunal (NCLT) and the Registrar of Companies. This adds another layer of scrutiny as Cult.fit navigates its path to the public markets.