Fitness-focused startup Gympass announced a $220 million funding round led by Softbank, General Atlantic, Moore Strategic Ventures, Kaszek and Valor Capital Group.
This new infusion of cash lifts the company’s valuation to a whopping $2.2 billion. Gympass officially became a unicorn in 2019 when it scored $300 million in strategic funding.
WHAT IT DOES
Founded in 2012, Gympass works with employers to offer staff a monthly fitness pass that can be redeemed at gyms and different fitness studios.
Employees are able to go on the app and search for their company, put in their employer ID, create an account and then select a fitness plan. Once the user is registered, they are able to look up fitness classes and gyms by location, time and activity.
The company bragged that it added over 1,000 clients during the pandemic and has facilitated 3.5 million fitness sessions since COVID-19 lockdowns began.
WHAT IT’S FOR
The company said that the new funds will help its U.S. market as gyms and workplaces begin to go back to in-person attendance.
“We’ve already seen a surge in gym and studio visits as countries begin to open up, and we fully expect even greater momentum as people head back to the office,” Cesar Carvalho, cofounder and CEO of Gympass, said in a statement.
“We’ve created the most complete wellbeing platform, covering fitness, therapy, mindfulness, and nutrition. The additional funding will help us fuel further growth in the U.S., improve the product experience and continue to expand into new categories, as we continue on our mission to make wellbeing universal.”
THE LARGER TREND
There are quite a few digital fitness startups. ClassPass, an online fitness membership platform, works similarly to Gympass. It too allows users to sign up for exercise classes in their area. However, unlike Gympass, ClassPass is best known for its direct-to-consumer business. In 2020 the company scored $285 million in Series E funding, which moved its valuation past the $1 billion mark.
There are also scores of fitness coaches on the market today. For example, AI-powered nutrition and fitness coaching app Freeletics scored $25 million in September of last year.
Even tech giant Apple is looking into the fitness space. Also, in September of 2020, the company unveiled its new subscription video fitness class offerings.
ON THE RECORD
“Similar to the hybrid work model that many have adapted due to the pandemic, we’re seeing a similar trend when it comes to fitness and wellbeing. Now, people are mixing in-person visits to gyms and boutique studios with digital, using meditation apps, nutrition offerings, in addition to other wellness offerings on the Gympass platform.
“We’ve seen firsthand that this is a change that will continue into the future and we look forward to expanding our reach and services to continue to support people’s overall wellbeing,” Carvalho said in a statement.