These days, there is increased traction in the fitness market as many people are becoming conscious about their health. This trend has paved the way for an increase in the number of health and activity tracking wearables. Taking this to the next level, many companies have come up with health-centric apps that can help a wider audience.
One such company in the digital fitness industry is ClassPass, which is an online, mobile service offering health services and fitness classes at a subscription fee. Founded in 2013 by Payal Kadakia, ClassPass enables users to find an easier way to work out and stay fit. The company partners with boutique fitness studios and lets users book a class and search through the inventory right from their smartphone.
Secures €256.5M funding
Now, ClassPass has announced that it has closed $285 million (nearly €256.5 million) Series E funding. This financing round has been led by Apax Digital and L Catterton along with participation from existing investor Temasek. Following this investment, this company has attained the unicorn status as its valuation reaches $1 billion.
Growth factors of ClassPass
Back in 2017, ClassPass announced that it will introduce a credit system that uses virtual currency. With the popularity of classes, the service brought variable pricing that let users use their virtual currency to sign up for classes instead of paying a monthly fee for up to ten classes per month. This lets users pay depending on the demand for the classes.
The other growth factor is the introduction of a corporate program, which let organisations subsidise employees using the product. It is different from the other corporate programs that ask the employers to subsidise individual employees irrespective of whether they use the service or not. Over 1,000 employers such as Google, Facebook, Goldman Sachs, Morgan Stanley, and others use the ClassPass platform.
Stepped into Europe
Also, it has been focusing on international growth. Notably, ClassPass was opened in the Netherlands in early 2019. Touted to be the ‘Netflix of fitness’, this company offers an exclusive promotion of a month of free classes in four cities such as Amsterdam, Rotterdam, Utrecht, and The Hague. Notably, it is the company’s first expansion into Europe after the UK. After the Dutch market, it also entered Germany and France.
Eyes further expansion!
With this investment, ClassPass intends to fuel its geographic expansion and grow its corporate business. Notably, it already operates in 28 countries and is all set to team up with over 30,000 partners including wellness providers, gyms, and boutique studios.
Main image picture credits: ClassPass
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