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Gympass raises US$85m, hits US$2.4bn value and logs its 300 millionth check-in

By Liz Terry    25 Aug 2023
Gympass recorded 300m health club check-ins over the year to July 2023 / Shutterstock/Jacob Lund
Gympass has completed a Series F funding round of US$85m
The deal has valued the company at US$2.4bn, up from US$2.2bn in 2021
The round was led by EQT Growth. General Atlantic and Moore Strategic Ventures are also increasing their interest in the business
Gympass reports that it has now recorded 300m check-ins up to July 2023. In March this year it said it had reached 250m. The 100m milestone was 18 months previous to that

Gympass, the aggregator which specialises in corporate wellbeing, has achieved a US$2.4bn valuation, up from US$2.2bn two years ago.

The announcement comes as the company reveals it's raised US$85m in Series F funding, led by EQT Growth.

For context, Gympass was valued at US$1bn in 2019, when it did a US$300m funding round with Softbank.

Existing investors General Atlantic and Moore Strategic Ventures are also increasing their interest in the business by purchasing shares from earlier investors and current and former employees.

The company, which was founded in Brazil in 2012, but is now based the US, will use the funding to continue its global expansion, from its current roster of 11 countries. It will also invest in product innovation for its main customer types – operators, corporates and employees.

Cesar Carvalho, CEO and co-founder said: “Organisations are shifting from reactive and traditional healthcare benefits that increase costs, to more holistic and preventative wellness benefits improve employee wellbeing and productivity while also reducing costs.

"Our new funding round validates our model and demonstrates that Gympass is uniquely positioned in any economic environment as companies seek partners to reduce healthcare costs and improve employee wellbeing."

Carolina Brochado, deputy head of the EQT growth advisory team said: ”Gympass’s powerful recurring model sees strong network effects the more it scales.

“This enables Gympass to deliver a diverse network of partners, reaching employees who might not previously have had access to wellness activities – as a result, further expanding the market.”

Gympass says it grew its customer base by 80 per cent in the year to July to 15,000 corporate customers. This has grown from 2,000 in 2019, so is one of the areas experiencing the most uplift.

Driving this performance is a network of 50,000 partners, including 24-Hour Fitness, Barry’s, Headspace, Life Time and Orangetheory.

This partner network was 47,000 in 2019, but has remained static at 50,000 since 2021, when the company did a Series E worth US$220.

Looking at total check-ins since launch, this number stood at 48m in July 2019, had reached 100m by July 2021 and 250m by March this year, It now stands at 300m (at July 2023), indicating the accelerating growth of the business.

Gympass has recently done deals with industry player, Les Mills, as well as integrating with software such as Xplor Gym.

Although Carvalho launched Gympass as a consumer aggregator, he smartly side-stepped this more competitive market within nine months of launch, pivoting to concentrate on corporates.

Companies in this market have a legal duty of care to safeguard the wellbeing of employees which is often connected to their public liability insurance.

They also have a financial interest in preventative healthcare for employees and recent research from Gympass found that getting employees physically active cuts company healthcare costs by 35 per cent.

At the point of its switch to the corporate market, Gympass wasn’t meeting even its most conservative targets, however, the first corporate customer – which was PricewaterhouseCoopers, – brought in 500 customers in the first three days of the partnership. “This was more than the company's accumulated retail customer base at that point,” Carvalho said at the time. "When we turned the key and focused only on the B2B market we knew we’d found our sweet spot, a real product/market fit."

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