Gympass Raises $220M Series E Funding - Corporate Wellness

Gympass Secures $220 Million in Series E Funding

Gympass, a Brazilian-born corporate wellness and fitness platform valued as a unicorn, has announced a new $220 million Series E investment. This substantial funding arrives as vaccination rates increase and individuals return to fitness facilities in greater numbers.

A Comprehensive Wellness Solution

Gympass operates similarly to ClassPass, but with a more extensive scope. Unlike ClassPass’s blend of business-to-consumer (BTC) and business-to-business (B2B) approaches, Gympass focuses exclusively on partnerships with employers.

These employers then remit a fixed fee for access to the platform – a mobile application – enabling their workforce to select from a variety of wellbeing programs. These programs grant access to a wide array of gyms and studios, alongside a curated selection of health applications, including options like Calm.

The available resources are categorized into four key areas: physical health, emotional wellbeing, nutritional guidance, and sleep support. Gympass currently serves prominent clients such as Google and Morgan Stanley.

Record Usage and Growing Demand

The company reports a record-breaking 4 million monthly check-ins across its network of over 50,000 partners globally as of May. Notably, usage levels at some partner locations have surpassed pre-pandemic figures.

Rising anxiety levels and documented weight gain experienced during the pandemic have fueled a renewed desire among individuals to prioritize physical activity, aiming to enhance both their mental and physical health.

The Genesis of Gympass

Gympass was founded by Cesar Carvalho, a former consultant at McKinsey & Company in Brazil. His frequent travel schedule highlighted a need for a flexible corporate wellness solution.

“My work often involved shifting between working from home, the office, and traveling,” Carvalho explained to TechCrunch. “I realized this challenge was shared by many others.”

He began developing his business concept while pursuing his MBA at Harvard Business School.

“I made the decision to leave my MBA program to launch the company, a risk that ultimately proved worthwhile,” he stated, adding that Gympass now operates in Brazil, Mexico, Chile, Argentina, the U.S., Germany, Spain, Italy, Ireland, and the U.K.

From B2C to B2B and Organic Growth

Initially conceived as a B2C offering, Gympass quickly found its footing. An early client, an executive from PricewaterhouseCoopers in Brazil, inquired about extending access to the platform to their entire 5,000-employee workforce across Brazil.

This request prompted Carvalho to recognize the potential of a B2B model and pivot the company’s strategy.

Expansion followed a similar pattern. After three years in Brazil, a major client requested Gympass’s availability in Mexico, due to their significant presence there.

“Our expansion into Spain was driven by a Spanish bank in Mexico, who wished to provide their Spanish employees with access to our services,” Carvalho noted.

Future Plans and Investment Details

This funding round brings Gympass’s valuation to $2.2 billion. Investors include SoftBank, General Atlantic, Moore Strategic Ventures, Kaszek Ventures, and Valor.

Carvalho intends to allocate the funds towards growth in the U.S. market, broadening the platform’s offerings, and enhancing the underlying technology.

“Our goal is for the app to intelligently recommend the most suitable partners to support a user’s overall wellbeing, based on their exercise habits,” Carvalho explained. “For example, suggesting the optimal meditation app to complement their workout routine.”