International wellness marketplace, ClassPass, recently announced the close of a USD$285 million Series E investment, led by L Catterton, Apax Digital and participated by existing investor Temasek.
Now operating in 28 countries, ClassPass offers a monthly membership to boutique studios, gyms and wellness providers globally, including multiple locations in major Australian cities.
The company joins the likes of Uber and Airbnb in achieving the status of a unicorn business — that is, any privately held startup company valued at over USD$1 billion.
In 2013, Payal Kadakia, the Founder and Executive Chairman of ClassPass, was inspired to establish the company after a frustrating search of a dance class to take after work.
Disappointed with the hassle of locating classes, coordinating schedules and creating accounts, she realised that attending workout sessions can sometimes be painfully complex.
ClassPass was created to demystify this process.
Years later, what started out as an app has evolved into one of the largest networks of wellness experience, which has over 650 employees around the world and more than 1,000 employers signing into its corporate wellness program.
The company intends to continue scaling its proprietary reservation and booking technology around the world with funds recently raised in Series E investment.
“We are motivated by the impact we’ve had on members and partners, including 100 million hours of workouts that have already been booked,” Payal said.
“This investment is a significant milestone that will further our mission to help people stay active and spend their time meaningfully.”
ClassPass also has the ambition of sustaining and securing its international success through the fund.
“Our goal is to be the brand of choice and clear leader in every country we enter,” said Fritz Lanman, CEO of ClassPass.
“This investment will allow us to expand more rapidly within existing geographies, add more countries to our network, and scale our corporate program globally.”
As a 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.
Marc is positive towards the advantage of ClassPass’s mode of operation and future potential.
“ClassPass has continuously evolved its model to meet the changing needs of both partners and users,”
“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.”
L Catterton has partnerships 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, Will’s Gyms (China), and BodyTech (Latin America). Apax has significant experience helping digital marketplace and consumer subscription businesses scale globally.