Fitness and wellness marketplace becomes a unicorn after Series E fundraise
Global marketplace ClassPass - which connects customers with more than 30,000 boutique studios, gyms and wellness providers in cities including London, Manchester and Edinburgh - has announced it secured $285 million in Series E investment, securing unicorn status.
The funding round was led by L Catterton and Apax Digital. It follows ClassPass's expansion into 28 countries and the signing of more than 1,000 leading employers into its corporate wellness program.
ClassPass, which now employs more than 650 internationally, will use the investment to continue to grow at scale, providing its booking tech worldwide.
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.
Founder and Executive Chairman at ClassPass, Payal Kadakia said: “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."
Fritz Lanman, ClassPass CEO, said: “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.
“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 worked with tech-enabled brands including Peloton, and Tonal, as well as studio and fitness club brands like Xponential Fitness. Apax has significant experience helping digital marketplace and consumer subscription businesses scale globally.
Magliacano of L Catteron said: "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. ClassPass has continuously evolved its model to meet the changing needs of both partners and users. The ClassPass credits model, when combined with its AI 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."
O'Keefe of Apax Digital said: “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.
"We are excited to leverage the Apax global footprint to help ClassPass continue to accelerate its international traction.”