Gympass Raises $85 Million in Series F Funding at $2.4 Billion Valuation, Strengthens Position as the Leading Global Corporate Wellness Platform
Funding comes in a record year for Gympass, as it nearly doubled its customer base to more than 15,000 and surpassed two million employee subscribers across its network of more than 50,000 partners
Gympass delivers the best network of gyms, studios, classes, personal trainers, and wellness apps - all in one employee benefit
New investment will accelerate Gympass growth globally as companies prioritize decreasing healthcare costs and improving employee wellbeing
NEW YORK, Aug. 23, 2023 /PRNewswire/ -- Gympass, the leading corporate wellness platform, today announced it has raised $85M in a Series F funding round at a valuation of $2.4 billion. The round was led by EQT Growth, with participation from Neuberger Berman on behalf of its client funds.
Gympass' funding comes in a record year for the company, even with economic headwinds: it grew its customer base by 80% to more than 15,000 corporate customers and surpassed two million employee subscribers across its network of more than 50,000 partners. Regardless of the economic environment, organizations are recognizing that employee wellbeing doesn't just positively impact retention, happiness and productivity–it also decreases healthcare costs. A Gympass study on the ROI of wellness programs discovered that physically active employees can reduce company healthcare costs by thirty-five percent after a twelve month period.
"Gympass is revolutionizing corporate wellness at a time where every company is making investments to drive efficient growth and reduce spending," said Cesar Carvalho, CEO and Co-Founder of Gympass. "Organizations are shifting from reactive and traditional healthcare benefits that increase costs, to more holistic and preventative wellness benefits that reduce costs and improve employee wellbeing and productivity. Our accelerated growth and new round of funding reflects validation of our model, that Gympass is uniquely positioned in any economic environment as companies seek innovative partners to reduce healthcare costs and improve employee wellbeing."
"For years we have watched the Gympass team exceed expectations again and again. Their powerful recurring model, which now reaches 11 markets globally, sees clear and strong network effects the more it scales," said Carolina Brochado, Deputy Head of the EQT Growth Advisory team. "It enables Gympass to deliver a diverse and growing network of partners, thereby reaching employees who might not have previously had access to wellness activities and as a result further expanding the market. We are really excited to be helping this stellar management team continue to build a healthier, happier, and more productive corporate world."
Since 2012, Gympass has led innovation in the corporate wellness category, offering the best global network of gyms, studios, classes, personal trainers, and wellness apps - all in one employee benefit. Companies can improve employee wellbeing and reduce healthcare costs by offering a benefit that is proven to drive higher employee participation. On average, Gympass more than doubles the number of employees engaged with wellness.
The funding news comes on the heels of several significant milestones for Gympass, including:
- Surpassing 15,000 corporate customers in July (up 80% YoY), including Aflac, Citizens Financial Group, Dignity Health, and Zendesk.
- Achieving industry leading levels of engagement, surpassing two million employee subscribers in July and 300 million total member check-ins to its network of more than 50,000 partners.
- Announcing new partnerships with leading wellness organizations, including 24 Hour Fitness, Barry's Bootcamp, CorePower Yoga, Headspace, Lifetime, MyFitnessPal, Orangetheory Fitness, Sleep Cycle and Thrive Global.
- Expanding into new, non-physical wellness categories including mental health, nutrition and financial wellness.
- Releasing its first Return on Wellbeing Study, a survey of more than 2,000 human resource leaders that found 78% of wellness programs save companies money on healthcare expenses.
Gympass' mission to make wellbeing universal has never been more critical. More than four out of five employees globally believe wellbeing is equally important to salary and 53%, of U.S. workers and 44% globally say they're stressed on a daily basis. Today's employees understand the value of wellbeing and are increasingly demanding it, which is putting pressure on employers to adapt.
Gympass will use this new funding to continue to fuel its global expansion and product innovation, investing in its platform to enhance the user experience for both employers and employees. With an accessible, affordable, and flexible platform, employees are empowered to embark on their individual wellness journey with confidence, motivation, and a sense of community.
In addition to the Series F funding led by EQT Growth, General Atlantic and Moore Strategic Ventures are also doubling down on their investments in Gympass by purchasing existing shares from earlier investors and current and former employees.
About Gympass
Gympass is the most loved corporate wellness platform, offering the best network of gyms, studios, classes, personal trainers, and wellness apps - all in one employee benefit. More than 15,000 companies use Gympass to help their employees move, eat, sleep, and feel better with access to fitness and wellness partners in subscriptions that cost up to 50% less than traditional memberships. Gympass more than doubles the number of employees engaged with wellness. This widespread participation results in workforces that are 40% less likely to turnover and save their companies up to 35% on healthcare costs. Investing in employee wellbeing is investing in company performance. Get started at gympass.com.
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SOURCE Gympass
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