- After being valued in $ 610 million in 2018, ClassPass reached the unicorn status
- The fitness company raised a $ 285 million fund led by L Catterton and Apax Digital
- Classpass plans to use the investments to get stronger in the European market and expand its business to Latin America
- The US startup will the Gympass’ main competitor in Latin America, especially Brazil
ClassPass, the fitness startup that allows users to pay a single monthly tax and have access to several boutique studio classes, was valued in $ 1 billion after raising $ 285 million in a funding round led by L Catterton, a private equity firm, and Apax Digital, a growth equity fund, according to Fast Company.
The newest unicorn in the fitness market plans to use the fund to invest in its expansion strategy to reach 28 new countries, Latin America included. In December, ClassPass had already announced Brazil as its first target in the region, increasing the competition with Gympass, the Brazilian unicorn that is the current leader of this market in the region, but now the expansion plans went bigger.
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Besides getting stronger in the European market, where the US startup already has great relevance, ClassPass will invest in going further than Brazil and start targeting other Central and South American countries in the near future.
In an interview for Fast Company, Payal Kadakia, ClassPass’ co-founder and executive chairman, explains the company goal by telling that “it’s really amazing when you can go to another country that doesn’t speak the same language or necessarily have the same background in fitness, but then apply this model and see that the behavior is very similar to what we saw in a small town here in the U.S.,” and he also highlighted the opportunities in emerging markets, “you see someone in Singapore or in Brazil using the product in the same exact way.”