NEW YORK, United States — ClassPass has completed an $85 million funding round to support global expansion plans, including its first foray into Southeast Asia.
Led by existing investor Temasek, an investment company headquartered in Singapore, with participation from the private equity firm L Catterton, which has investments in Equinox, Rumble and Peloton, the series D round takes ClassPass’ total funding to date to $255 million.
“We’ve had tremendous success creating the category and becoming the leading fitness subscription in the US, but our ambitions have always been more lofty than geographic constraints,” explained 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.”
Launched in 2013, ClassPass currently operates across the US, Canada, Australia and the UK. Having spent much of the last 12 months focusing on growing its total addressable market geographically and through new product offerings, the fitness membership platform is now ready to shift gears.
With plans to launch in more than 20 new countries internationally and another 10 cities domestically by the end of 2019, ClassPass aims to cement itself as the largest fitness aggregator in the world.
In order to support its ambitions, the brand recently transitioned from a fixed class model to a dynamically priced credits based model in order to maximize membership benefits and optionality. According to ClassPass, these changes better align with its goal of making the membership work for more people, driving more revenue to partners and positioning the company’s business economics for longevity. However, some customers were less than happy with the changes, taking to social media to lambast the new model.
Despite the criticisms, Lanman and the rest of the team are sticking by their decision, citing existing investor Temasek’s decision to lead the latest found as a major vote of confidence in the business and a reflection of the successful evolution to the credits model.
Temasek’s continued engagement will be especially useful for ClassPass as it tackles the Southeast Asian market. With plans to debut in three Southeast Asian cities this year, starting with Singapore, the fitness aggregator will be up against some tough competition from the likes of Singapore’s GuavaPass and Malaysia-based KFit.
GuavaPass, which currently operates in 12 countries across Asia and the Middle East, is an established player in the region, offering over 1 million classes to its growing database. But that doesn’t seem to be worrying ClassPass.
“Wellness in Singapore is truly vibrant and thriving,” argued Fritz Lanman, ClassPass CEO.
“With growing consumer awareness driving demand, and more premium international fitness brands and boutique studios in our network continuing to set up here, we’re honing in on Singapore as a springboard into Asia,” he added.