- ClassPass has confirmed that it has raised $285 million in funding. And the company is now reportedly valued at more than $1 billion.
Late last month, it was rumored that ClassPass was looking to raise $285 million at a valuation of more than $1 billion. And it has been officially announced today. This round of funding was led by L Catterton and Apax Digital. Existing investor Temasek also participated in the round.
This round of funding follows the successful expansion by ClassPass into 28 countries and the signing of over 1,000 leading employers into corporate wellness. And the company offers members access to the largest global network of wellness-inspired experiences.
Launched in 2013, ClassPass is now partnered with over 30,000 boutique studios, gyms, and wellness providers. Now ClassPass has 650 employees across 5 continents. And this round of funding will enable ClassPass to continue rapidly scaling its proprietary reservation and booking technology around the world.
“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,” said ClassPass CEO & co-founder Payal Kadakia Pujji.
In conjunction with the funding, L Catterton managing partner Marc Magliacano and Apax Digital managing partner Daniel O’Keefe are joining 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,” explained ClassPass CEO Fritz Lanman. “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.”
What makes the investment from L Catterton compelling — which has about $20 billion of equity capital across seven fund strategies — is that the investment private equity firm has experience working with major fitness brands like Peloton, Hydrow, and Tonal along with studio and fitness club brands like Xponential Fitness, Equinox Holdings, Pure Barre, CorePower Yoga, Will’s Gyms (China), and BodyTech (Latin America). And Apax has substantial experience in 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,” stated 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.”
Using machine learning, ClassPass also simplifies the discovery process. The company’s technology also provides catered recommendations to each member based on their goals and preferences.
Since launching over 40 years ago, Apax raised and advised funds with aggregate commitments of $50 billion. And O’Keefe pointed out that ClassPass is the tenth investment Apax made in a leading global marketplace business.
“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,” explained O’Keefe. “We are excited to leverage the Apax global footprint to help ClassPass continue to accelerate its international traction.”
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