ClassPass, the fitness membership subscription service, announced the close of a $285 million Series E investment. The round, which was led by L Catterton and Apax Digital, with additional participation by existing investor Temasek, follows the successful expansion by ClassPass into 28 countries and the signing of more than 1,000 leading employers into its corporate wellness program.
Founded in 2013, ClassPass partners with more than 30,000 boutique studios, gyms and wellness providers, offering members access to the largest global network of wellness-inspired experiences. The investment will enable ClassPass, which now has over 650 employees across five continents, to continue rapidly scaling its proprietary reservation and booking technology across the globe.
“We are motivated by the impact we’ve had on members and partners, including 100 million hours of workouts that have already been booked. This investment is a significant milestone that will further our mission to help people stay active and spend their time meaningfully,” says Founder and Executive Chairman Payal Kadakia.
As part of the investment, Marc Magliacano, Managing Partner at L Catterton’s Flagship Fund, and Daniel O’Keefe, Managing Partner at Apax Digital, will join the ClassPass Board of Directors.
“This fundraise is a reflection of our proven and sustained success in the U.S. and our rapid adoption internationally. In 18 months, we’ve scaled from 4 to 28 countries. Even in our recently launched European markets, our partners consistently call us their #1 driver of new customer reservations,” said Fritz Lanman, ClassPass CEO. “Our goal is to be the brand of choice and clear leader in every country we enter. This investment will allow us to expand more rapidly within existing geographies, add more countries to our network, and scale our corporate program globally. Additionally, I am thrilled to welcome two new board members with incredible domain expertise in digital subscription businesses and the fitness industry more broadly.”
L Catterton has deep experience working with leading fitness brands, including tech-enabled brands such as Peloton, Hydrow, and Tonal, as well as studio and fitness club brands, including Xponential Fitness, Equinox Holdings, Pure Barre, CorePower Yoga, Will’s Gyms (China), and BodyTech (Latin America). Apax has significant experience helping digital marketplace and consumer subscription businesses scale globally.
“As an investor in a number of highly respected studio and fitness club brands, we have seen firsthand how ClassPass providers and members mutually benefit from the ClassPass relationship,” said Magliacano. “ClassPass has continuously evolved its model to meet the changing needs of both partners and users. The ClassPass credits model, when combined with its A.I. tools, allows studios significant flexibility in monetizing their excess inventory and generates more revenue for studios than any other aggregator. We are confident that ClassPass is poised to grow into one of the most prominent wellness brands of the new decade and we couldn’t be more excited to continue to partner with Fritz and his team.”
“Apax has a long history of backing leading global marketplace businesses, and ClassPass is the tenth such investment to date. We’ve known the company since its early days and have been continually impressed by its global brand, attractive customer and studio value propositions, and history of explosive growth,” said O’Keefe. “We are excited to leverage the Apax global footprint to help ClassPass continue to accelerate its international traction.”
ClassPass, the fitness membership subscription service, is seeking to raise $285 million in a new funding round, according to a report from Reuters. The funding could lift ClassPass’ valuation above $1 billion.
The company, backed by Temasek and Alphabet Inc., will issue 22.7 million ‘Series E’ shares as part of the funding round, according to a securities filing obtained by Reuters from analytics firm Lagniappe Labs.
ClassPass is currently valued at $536.4 million, according to Prime Unicorn Index. Through its mobile app, ClassPass sells monthly subscription plans for access to fitness studios and gyms. It has also partnered with companies like Google, Facebook and Morgan Stanley to offer corporate wellness plans.