LatAm’s Smart Fit Acquires Cycling Chain Velocity

Smart Fit is scaling up.

What’s happening: The leading LatAm gym operator acquired indoor cycling chain Velocity for R$183M.

Adding 82 units, Smart Fit is planning to hit ~200 total Velocity sites in Brazil before exploring international expansion.

All systems grow. Staying in growth mode, it initiated a $R450M ($80.8M) bond sale to attain working capital.

Buying Velocity, Smart Fit quadruples its boutique footprint, adding cycling to its portfolio of HIIT, weight training, yoga, boxing/functional training and Pilates banners.

Of note, Smart Fit will onboard Velocity to TotalPass from rival B2B programme Wellhub (fka Gympass), amplifying reach and revenue.

Making moves. Giving chase, LatAm’s biggest HVLPs are bolstering their Brazil businesses.

• Selfit invested R$42M to add 12 sites in June and July, hitting 132 and upping space for more modalities from cycling to Pilates.
• Last year, Mubadala Capital acquired 51% of Bluefit for R$464M to leverage the sector’s growth and increase its 140 Brazilian clubs.
• Community-centric, bodytech’s newly opened 92nd club mixes kids’ zones, boutique studios and gym space, while its training app topped 5M downloads.

Takeaway: According to Smart Fit, one-third of its network is yet to mature, allowing the dominant player in Brazil to test the developing market’s true value.