EGYM Lands €207M To Expand Smart Fitness Ecosystem

The future of the gym is only a couple of years off, at least according to EGYM.

What’s happening: The German maker of smart fitness equipment and software raised €207M in a Series F round led by Affinity Partners.

With the first tranche in hand, EGYM notched a €600M valuation, and after growing 70% YoY, plans to IPO following a concerted expansion in the US.

What it means: According to CEO Philipp Roesch-Schlanderer, the company’s potential lies in owning the “shared economy of a gym.”

Viewing movement as medicine, EGYM uses commercial sales of smart equipment, health-tracking software, and a rapidly growing corporate wellness division called Wellpass to help everyday exercisers quantify their activities and translate them into meaningful health outcomes.

Gym of the future. Of note, its hardware business—once its primary growth driver—only pulled in 25% of its $130M annual revenue. Instead, the company sees its software making the largest impact, with forthcoming plans to pair an AI health coaching function with every piece of machinery in the gym.

And that’s an easy sell for healthcare- and employer-sponsored exercise programs, which depend on data to quantify a consumer’s progress. Partnering as an enabler of preventative wellness, EGYM will push Wellpass – which counts 2.5M users and is growing 100% YoY – into hyper-growth mode.

Movement is Medicine

Connected hardware makers and digital fitness companies that blossomed during the pandemic are now struggling, largely for viewing health too myopically.

While Peloton and others still emphasise content and entertainment, others like Technogym and Apple have made the tie that exercise is actually lifestyle medicine. And while countless “miracle” weight loss drugs compete for the doctor’s prescription pad, emerging studies demonstrate movement’s tried-and-true efficacy.

• Physical activity, especially high-intensity exercise, was found to be 1.5x more effective than counseling or leading medications in treating depression.
• A 2022 study concluded, one hour of moderate to vigorous aerobic activity per week resulted in 15% lower mortality, with three hours dropping them metric 27%.
• Just 30–60 minutes of strength training per week can reduce all-cause mortality by 10–17%.

Takeaway: By using technology to eliminate the question “am I doing this right?” from the equation, all while getting the nod from employers and insurers, EGYM can dramatically increase exercise uptake for the global population – and that’s something every gym would want.