Corporate wellness platform Gympass has successfully secured $85 million in a Series F funding round, boasting an impressive valuation of $2.4 billion. This achievement stands out amidst the challenges faced by other companies in the fitness industry due to the current economic climate.
EQT Growth took the lead in this funding round, with Neuberger Berman Group participating on behalf of their client funds. Additionally, General Atlantic and Moore Strategic Ventures bolstered their involvement in Gympass by purchasing existing shares from prior investors as well as current and former employees.
This high valuation of Gympass arrives at a time when the demand for corporate wellness programs is soaring. Employees now anticipate offerings such as gym memberships, discounts on fitness classes, and other wellness incentives as integral parts of their employment packages, especially when working with top-tier companies.
Cesar Carvalho, the co-founder and CEO of Gympass, expressed the company’s role in transforming corporate wellness. He noted that organizations are transitioning from traditional healthcare benefits that escalate costs to more comprehensive and preventive wellness benefits. These holistic approaches not only curtail expenses but also enhance employee well-being and overall productivity.
Despite the global economic challenges that have adversely affected the valuations of numerous fitness companies, Gympass has achieved remarkable results this year. The platform expanded its customer base by an impressive 80%, catering to over 15,000 corporate clients. Moreover, its network of more than 50,000 partners now serves beyond two million employee subscribers.
Originating in Brazil in 2012, Gympass provides companies and their workforce access to a vast global network encompassing gyms, studios, classes, personal trainers, and wellness apps. Its partners range from well-established gym chains like Crunch Fitness to newer additions like 24 Hour Fitness, Barry’s, Life Time, MyFitnessPal, and Orangetheory Fitness.
Gympass is actively venturing into holistic health and wellness, recently collaborating with the mental health app Headspace. The platform’s partnerships extend to other areas such as sleep tracking through Sleep Cycle and behavior change via Thrive Global.
The platform highlights the positive impacts of investing in employee well-being, including enhanced worker retention, overall happiness, and increased productivity. Moreover, it asserts that such investments lead to reduced healthcare costs for organizations. A recent study conducted by Gympass revealed that 90% of companies observing the ROI of their wellness programs witness a favorable return. Notably, employees who engage in physical activity can potentially decrease company healthcare expenses by 35% over a span of 12 months.
Cesar Carvalho emphasized that the platform’s accelerated growth and the latest funding round signify validation of their unique model. Gympass is well-positioned to thrive irrespective of the economic environment. This is especially significant as businesses actively seek innovative partners to curtail healthcare expenses and foster employee well-being.
