Urban Sports Club Scores €95M, Pushes Corporate Wellness

Europe’s corporate wellness market is gaining ground.

What’s happening: Berlin-based Urban Sports Club closed a €95M round led by Norwegian investment firm Verdane. The new funding will support the fitness marketplace’s B2B offering, which already accounts for most of its member base.

With an 11K-venue network, Urban Sports Club offers 50+ sports and wellness activities across six territories – Germany, Netherlands, France, Belgium, Spain and Portugal – with Austria set to launch.

Scaling up. Founded in 2012, Urban Sports Club has raised €175M to date while expanding its European network.

Benefiting as more companies prioritise employee well-being, its revenues grew 100% YoY in  2022, and its corporate client base has swelled to 7K companies.

Why it matters: With employers investing in health, the corporate wellness market is forecast to reach $113B by 2030.

• Gallup reported ~69% of employees would not look for a new job if their employer invested in well-being – and they’re three times more likely to be engaged at work.
• Out of 5K employees, Gympass found 96% seek employers who prioritise well-being, with 94% saying physical wellness boosts productivity.
• In its own study, 70% of Urban Sports Club’s corporate members say the platform reduced stress and sickness while improving sleep.

Global gains. Corporate wellness continues to rack up financial backing despite the VC downturn. In August 2023, market leader Gympass raised $85M, notching a $2.4B valuation. It counts 15K corporate clients, 2M employee subscribers and 50K partners across fitness and wellness.

Competing on multiple fronts, Mindbody acquired ClassPass in 2021, unifying business management software, a consumer fitness subscription and corporate wellness offering. Broadening its base, the combined company counts more than 40K gyms, spas and studios in its global network.

Takeaway: Employees are no longer willing to sacrifice well-being for work, and companies are being forced to adapt. Stepping up, benefits platforms — from fitness to mental health and fertility — can redefine wellness at work.