SAN LUIS OBISPO, United States – Wellness technology platform Mindbody officially rolled out its business financing tool Mindbody Capital this week, designed to provide wellness businesses with “simple, fast and transparent access to financing”.
The investment arm of the business will offer a similar financing solution as that developed by ecommerce platform Shopify and mobile payment company Square to prop up small businesses squeezed by shortfalls in cash flow.
Companies that participate in Mindbody Capital will receive non-recourse financing with a one-time capital fee, rather than loan subject to interest, which Mindbody believes makes it an offering unlike any other on the market.
Powered by fintech solutions company Parafin and accessed directly via the company’s software, the platform has already seen $2 million of interest-free funding accepted.
Yoga London is one such wellness business already said to have taken advantage of a cash advance via Mindbody Capital, helping establish its operation as it built its community from a standing start.
“Rather than a lengthy process required by traditional funding options, Mindbody Capital presented me with a reliable, pre-approved offer that could be funded as soon as the next day,” Founder Favad Malik explained.
“This access to capital has been game-changing in helping my business thrive through the ability to expand as needed, run day-to-day operations and deploy creative strategies.”
Wellness industry not only rebounding but “expanding”
The official launch of Mindbody Capital follows the acquisition of wellness subscription service ClassPass in October. At the time of that deal, Mindbody announced it had also secured a strategic investment of $500 million to “power a new era of wellness”.
And data from ClassPass, now under the Mindbody portfolio, suggests the wellness industry is already surpassing pre-pandemic levels.
In-person reservations are up 27% since December 2021, while February 2022 saw the most ClassPass reservations since the same month in 2020, just before COVID-19 took hold.
Looking to the future, 55% of Mindbody fitness customers estimate that attendance will be back to 100% of pre-pandemic levels by December 2022.
Commenting on this week’s announcement, Mindbody and ClassPass CEO Josh McCarter noted how the company has dedicated its resources to support customers with fee relief, advocacy efforts and enhanced educational tools to ride out the ups and downs of the past two years.
Now, via Mindbody Capital, McCarter believes the industry will not only be able to rebound, but also expand, following a period of contraction.
“We knew we could do even more to help our customers recover and accelerate their growth as we exit the pandemic,” said McCarter. “Almost a third of Mindbody customers plan to expand their business into more locations in the next 12 months.”
He added: “Supporting these businesses in funding their growth is just one of the many ways Mindbody Capital can help the wellness industry rebuild.”
*At present Mindbody Capital is only available in the US.