EGYM has recently secured a significant amount of funding to enhance its connected fitness startup. The Munich-based company raised over $200 million in a Series G funding round led by L Catterton and Meritech, two new investors of the startup. This investment has pushed EGYM’s post-money valuation to over $1.2 billion.
The primary objective of the funding is to expand EGYM’s presence in key markets such as the U.K. and the U.S. The company recently acquired two smaller firms, Hussle and FitReserve, in these regions. Additionally, EGYM aims to further develop its AI-based assistant, Genius, which was introduced earlier this year. CEO Philipp Roesch-Schlanderer emphasized the practicality and value of Genius in providing personalized workout guidance based on users’ past success, behaviors, and goals.
Roesch-Schlanderer founded EGYM based on his personal challenges with fitness and gym routines. The company’s connected workout stations and apps help users track their activities, offering valuable insights and guidance. EGYM’s business model revolves around selling equipment to gyms and partnering with companies to promote employee wellness through fitness programs.
The success of EGYM is evident through its profitable operations and revenue projections. With a network of 17,000 gyms, 14,000 corporate clients, and 3 million eligible employees, EGYM serves millions of users monthly. The company’s subscription-based services account for 75% of its revenue, with the remaining 25% attributed to equipment sales.
As the concept of preventative healthcare gains traction, EGYM is well-positioned to capitalize on the growing interest in fitness and well-being. The introduction of AI technologies like Genius reflects the company’s commitment to innovation and improving user experiences. By leveraging machine learning models tailored to fitness domains, EGYM aims to enhance workout routines for its customers.
The latest funding round underscores the investor confidence in EGYM’s vision and potential for growth. The company’s focus on expanding its market reach and advancing AI capabilities aligns with broader trends in healthcare and wellness. With experienced investors like Paul Madera and Marc Magliacano joining the board, EGYM is poised to accelerate its growth and solidify its position in the fitness industry.
