EGYM, the Munich-based smart fitness startup, has raised a significant amount of funding from Affinity Partners, an investment firm led by Jared Kushner. The company secured a whopping €207 million ($225 million), highlighting the strong growth it experienced in the past year. EGYM focuses on providing a comprehensive solution for fitness enthusiasts, including connected hardware, software, a corporate health network called Wellpass, and a mission to improve healthcare outcomes.
The CEO and co-founder of EGYM, Philipp Roesch-Schlanderer, believes that the healthcare market mainly focuses on treating chronic conditions with medicine and therapies instead of prioritizing prevention. EGYM aims to change this approach by encouraging people to exercise and take better care of their bodies. Despite the simplicity of this proposition, EGYM’s numbers speak for themselves. The company generated $130 million in revenue in 2022, marking a remarkable 70% year-over-year growth. Wellpass, in particular, witnessed a 100% growth during the same period. EGYM is now planning to expand into new markets like the U.S. and aims to double its overall revenues to $260 million in 2023, while also achieving profitability.
Interestingly, Affinity Partners, a Saudi-backed investment firm, has taken the lead in this funding round. The firm was founded by Jared Kushner, the son-in-law and close confidante of former U.S. President Donald Trump. This Series F funding round, which raised €107 million immediately, values EGYM at €600 million. The remaining €100 million will be available for future use, likely at a higher valuation.
EGYM’s success comes after nearly 14 years in business, during which it almost faced bankruptcy due to the impact of Covid-19 on the fitness industry. However, the company managed to turn things around by leveraging technology to improve the gym experience. It started with its own hardware, gradually incorporating more advanced technology and software into the mix. The company is now working towards introducing an AI-based personal trainer to enhance personalization and improve workout efficiency.
While many consumer-focused fitness businesses faced challenges in recent times, EGYM adopted a B2B approach, targeting gyms of all sizes as its customers. Currently, around 16,000 gyms are using EGYM’s products. The company has also expanded its reach by partnering with corporates to offer health and wellness benefits to their employees. Approximately 11,500 of these corporate clients are part of the Wellpass network.
The health and fitness industry has witnessed a surge in interest and investment, particularly in companies focused on preventive care and utilizing technology to enhance traditional healthcare models. This trend includes startups like Neko Health and Augmedics, both of which secured significant funding for innovative healthcare solutions.
EGYM’s substantial funding round from Affinity Partners indicates the promising future of the company’s smart fitness solutions. It not only reflects the effectiveness of its offerings but also highlights the increasing importance society places on proactive health and wellness practices.
