Gympass Hits $2.4B Valuation After Latest Funding Round
The corporate wellness platform now has over 15,000 customers and two million employee subscribers
Gympass, a top corporate wellness platform, has raised $85 million in a Series F funding round at a valuation of $2.4 billion, an eye-watering number given the struggles of other fitness industry companies in the current economic environment.
EQT Growth led the funding round, with participation from Neuberger Berman Group on behalf of the investment firm’s client funds. In addition to the Series F, General Atlantic and Moore Strategic Ventures increased their stakes in Gympass by purchasing existing shares from earlier investors and current and former employees.
Gympass’ sky-high valuation comes as demand soars for corporate wellness programs, with employees increasingly coming to expect options like gym memberships, discounts on fitness classes and other wellness perks as part of their compensation package, especially from top firms.
“Gympass is revolutionizing corporate wellness at a time where every company is making investments to drive efficient growth and reduce spending,” said Cesar Carvalho, co-founder and CEO of Gympass. “Organizations are shifting from reactive and traditional healthcare benefits that increase costs to more holistic and preventative wellness benefits that reduce costs and improve employee wellbeing and productivity.”
It’s been a record year for Gympass, which has found success despite global macroeconomic headwinds that have tanked the valuations of other fitness companies. The wellness platform grew its customer base by 80% to more than 15,000 corporate customers and surpassed two million employee subscribers across its network of more than 50,000 partners.
Founded in 2012 in Brazil, Gympass offers companies and their employees access to what it says is the largest global network of gyms, studios, classes, personal trainers and wellness apps. In addition to longstanding partnerships with gyms including Crunch Fitness, Gympass recently added top fitness brands like 24 Hour Fitness, Barry’s, Life Time, MyFitnessPal and Orangetheory Fitness to its network.
Gympass is also pushing into wellness and holistic health, recently partnering with mental health app Headspace. The corporate wellness platform also has partnerships with Sleep Cycle, a sleep-tracking app, and Thrive Global, a behavior change platform.
According to Gympass, investing in employee wellbeing has positive impacts on worker retention, happiness and productivity, and also decreases healthcare costs for organizations. The platform recently released a study on the ROI of wellness programs, finding that 90% of companies that measure the ROI of their programs see a positive return. Physically active employees can reduce company healthcare costs by 35% after a 12-month period, the study found.
“Our accelerated growth and new round of funding reflects validation of our model, that Gympass is uniquely positioned in any economic environment as companies seek innovative partners to reduce healthcare costs and improve employee wellbeing,” Carvalho said.