US-based software specialist Zenrez has credited the increasing popularity of boutique fitness and yoga studios among the millennial generation for its rapid growth.

The company, which offers management software tools for fitness studios, has raised US$10m in private funding, which it will use to expand into major cities across the country – and to leverage its technology to expand into other fitness and wellness services.

Matthew Capizzi, Zenrez’s co-founder and CEO, said: “Fitness classes are the preferred method of how millennials choose to workout and boutique studios offer the highest quality experience.

“Boutique studios have moved away from the old big-box gym subscription breakage model, and instead, have opted for a more consumer-friendly but also more complex model in the form of pay-as-you-go packs. Therefore, they need a much more sophisticated solutions to effectively manage their business – and that’s what we’ve built with Zenrez.”

A report on the state of the fitness industry – published by the International Health, Racquet & Sportsclub Association (IHRSA) – showed that from 2012 to 2015, consumer-reported membership in traditional ?tness clubs grew by 5 percent, while in studios the number grew by more than 70 percent.

Capizzi added: “There’s much more revenue potential in the pay-as-you-go model, the challenge becomes maximising utilisation because you only get paid when people workout. This means creating a consistently great product so your customers want to come back as well as offering flexible pricing options to ensure you’re hitting all fitness-goer segments.”