L Catterton, Apax push ClassPass to unicorn status

ClassPass CEO says IPO is in the cards for fitness networking membership.

With an influx of fresh capital from L Catterton and Apax Digital, fitness and wellness marketplace ClassPass is in international expansion mode.

ClassPass closed a $285 million Series E investment led by L Catterton and Apax Digital on Wednesday, bringing its valuation to $1 billion, an announcement said.

L Catterton and Apax Digital, the technology-focused growth equity arm of Apax Partners, led the financing round alongside existing investor Temasek, bringing the fitness network membership’s total funding to $549 million. L Catterton previously invested in ClassPass’s Series D round.

In the last 18 months, ClassPass focused on growing from four to 28 countries across five continents over the last 18 months. With the new funding, CEO Fritz Lanman said the company intends to double down on international expansion, focusing on its newly acquired markets such as Sweden, The Netherlands and France, he said.

“Our long-term goal is to be an enduring public company, so [an IPO] is definitely in the cards for the future,” Lanman wrote in an email to PE Hub, declining to comment on any IPO dates or plans at this time.

ClassPass has also grown through M&A in the past, with acquisitions including GuavaPass in Singapore, FitMob in the U.S. and Fitness Collection in Sweden. The company has no acquisition plans at the moment, but hasn’t ruled out M&A in 2020, Lanman told PE Hub.

“In six months, we are already being looked at as the leading aggregator in these countries, and we want to continue this traction as well as adding new cities and countries,” Lanman said.

ClassPass also plans to recruit more corporate employers building their corporate wellness programs. The fitness membership has already enrolled 1,000 employers including Google, Facebook, and Southwest Airlines, for its corporate program.

The membership will also add more wellness experiences to the platform. ClassPass will develop more activities for its app, adding to existing offerings such as massages, meditation and cryotherapy treatments.

Founded in 2013 by Payal Kadakia, ClassPass offers consumers a streamlined way to book their exercise classes at brick-and-mortar locations through consumers’ smartphones. ClassPass partners with 30,000 gyms, studios, and wellness providers around the globe that are offered to ClassPass subscribers.

Action Item: Check out L Catterton’s latest Form ADV: https://bit.ly/2uyw07z