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ClassPass Now Worth More Than $1 Billion After Latest Funding Round

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(Bloomberg) -- ClassPass is now worth more than $1 billion, after raising new cash from investors, the startup said on Wednesday. The latest funding marks the fitness class subscription app’s entry into the unicorn club of startups, as fitness companies titillate investors.

The New York-based company, which lets users take classes across multiple boutique fitness studios and gyms without purchasing memberships at those locations, raised $285 million led by L Catterton and Apax Digital. The startup will use the funds to continue its international expansion.

“While the bulk of our revenue has historically come from the U.S., we are definitely seeing a shift over the past six months,” said Chief Executive Officer Fritz Lanman. “Our international traction is strong and indeed a large part of why we were able to raise such a large financing.”

ClassPass says it now has more than 30,000 partnership businesses on its platform, a third of which are international, and 650 employees across five continents. Much of ClassPass’s growth over the last 18 months has come from its international operations, as it has expanded to 28 countries.

ClassPass’s latest funding round suggests investors haven’t given up on the idea that people still like to work out with others and want to mix and match different types of exercise, from kickboxing to Pilates or strength training. Fellow New York exercise companies Peloton Interactive Inc. and Mirror have gone the opposite route, betting that people prefer the flexibility of working out at home on their own schedule. Some offer a mix of both.

“Users will pair boutique classes with an at-home workout on rainy days, which is why we have added complementary audio and visual workouts to our app,” Payal Kadakia, the founder and executive chairman, said. “Ultimately, we think there is room in the industry for both models, and are happy to partner with several brands, like Peloton, who also offer in-person classes.”

To contact the reporter on this story: Julie Verhage in New York at jverhage2@bloomberg.net

To contact the editors responsible for this story: Molly Schuetz at mschuetz9@bloomberg.net, Anne VanderMey

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