ClassPass, a fitness network membership, has secured $85 million in Series D funding. Temasek led the round with participation from L Catterton. In addition to the funding, Michael Farello of L Catterton has been added to the ClassPass board.
NEW YORK–(BUSINESS WIRE)–ClassPass, the leading fitness membership, today announced a $85 million series D financing led by Temasek, an investment company headquartered in Singapore, with participation from the Growth Fund of L Catterton, the largest and most global consumer-focused private equity firm in the world. With the latest round of funding, ClassPass has raised a total of $255 million and will be adding Michael Farello of L Catterton to its board.
“Having our Series C lead investor Temasek double down and lead our Series D is a major vote of confidence in our business and a reflection of the successful evolution to the credits model we made this year. Temasek has been a supportive shareholder, and their continued engagement will be especially helpful as we launch ClassPass throughout Southeast Asia,” said Fritz Lanman, ClassPass CEO. “Additionally, having L Catterton, one of the top investors in the fitness category, invest and join our Board validates how complementary our new model is for partners. As we continue to rapidly expand, we look forward to working with Temasek and L Catterton to solidifying ClassPass’ leadership position in the fitness industry worldwide.”
In the past year, ClassPass has been laser-focused on growing its total addressable market geographically and through new product offerings. After successfully launching 10 new domestic cities in the U.S. last fall, the company has now shifted its focus to launching more than 20 new countries internationally and another 10 cities domestically by the end of 2019 while doubling-down on the density of studio offerings in its existing markets. This round of funding will help accelerate those timelines and operations to support the company’s ambitions of being the largest fitness aggregator in the world.
“We are thrilled to partner with ClassPass, the leading technology-enabled platform serving the large and growing studio fitness industry,” said Michael Farello, Co-Managing Partner, L Catterton Growth Fund. “Fitness has become more personalized, and ClassPass represents an opportunity to invest behind a market leader that is well positioned for growth. With our deep knowledge of consumer behavior and significant experience in the fitness industry, we look forward to working with the outstanding ClassPass team to bring ClassPass to more customers in existing and new markets around the world.”
“We’ve had tremendous success creating the category and becoming the leading fitness subscription in the U.S., but our ambitions have always been more lofty than geographic constraints,” said Payal Kadakia, ClassPass Founder. “This latest round of funding helps bring our vision to reality as we more firmly establish ourselves as a global brand.”
ClassPass recently transitioned from a fixed class model to a dynamically priced credits based model in order to maximize membership benefits and optionality. These changes better align with the company’s goals of making the membership work for more people, driving more revenue to partners and positioning the company’s business economics for longevity.
Founded in 2013, ClassPass is the leading membership to the world’s largest fitness network. With over 10,000 partners in 50 cities worldwide, ClassPass connects members to a variety of fitness experiences, including yoga, cycling, Pilates, barre, running, strength training, dance, sports, videos and more. Recognized as one of Forbes’ Next Billion Dollar Startups, ClassPass leverages proprietary technology to dynamically merchandise and surface over a million fitness classes for a seamless booking experience that facilitates discovery.
Incorporated in 1974, Temasek is a global investment company headquartered in Singapore. Supported by its global network of 11 offices including New York, San Francisco and Washington D.C., Temasek owns a US$235b portfolio as at 31 March 2018, of which 13% is in North America. Our investment strategy allows us to partner with management teams across sectors that help bring about a better, smarter and more connected world. For more information on Temasek, visit www.temasek.com.sg
About L Catterton
With over $15 billion of equity capital across six fund strategies in 17 offices globally, L Catterton is the largest consumer-focused private equity firm in the world. L Catterton’s team of more than 150 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad thought partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH and Groupe Arnault. For more information about L Catterton, please visit lcatterton.com.