Affinity Partners pays EGYM 207 million euros in growth capital
€207 Million in Growth Capital From New US Investor Affinity Partners
Rapid growth and a shared vision tipped the scales: the new US investor Affinity Partners and existing investors are backing EGYM with €207 million ($225 million) in growth capital to digitize the fitness industry and transform the healthcare market for good.
About 3 min
EGYM is raising up to €207 million in growth capital from its new investor Affinity Partners, a global investment firm based in Miami, USA, as well as from existing investors Mayfair Equity Partners, and Bayern Kapital in a Series F financing round. €107 million will flow immediately, with an additional €100 million available for future investments. The investment focuses on further developing innovative digital solutions for health-focused workouts and an ambitious expansion of the EGYM Wellpass corporate health network. The EGYM Group is growing 70 percent year-over-year (Wellpass specifically: more than 100 percent) and expects to profitably close the fiscal year 2023, while also making significant investments in future growth.
Importantly, EGYM Wellpass has become the leading corporate health network with over 11,500 sports and wellness facilities across Germany, Austria, and France. Nearly 2.5 million eligible employees from more than 7,500 participating companies have the opportunity to train at favorable rates and as often as they want at Wellpass partner studios. Almost 80 percent of all Wellpass participants did not previously have a gym membership. In 2022, EGYM acquired Gymlib, the market leader in the French corporate health market, and plans to expand its corporate health network further internationally.
EGYM co-founder and CEO Philipp Roesch-Schlanderer said: "We are delighted that our new partner Affinity Partners shares our vision to digitalize the entire fitness industry. We want to be the platform that makes fitness clubs leading players in the transformation of the world's largest market of all – the healthcare market – from repair to prevention. This includes modern, safe and effective training programs and data usage to improve training quality and documentation of training success. Corporate health plays a prominent role in achieving this goal. With the new growth capital, we will massively expand EGYM Wellpass to help employers strengthen the wellbeing of their workforces through exercise at thousands of high-quality fitness clubs. The Wellpass program is also an important incentive for companies in the increasing struggle to attract and retain employees. And for fitness and health facilities, EGYM Wellpass is a strong partner so they don't miss out on the billion-dollar trend of workplace health management."
Asad Naqvi, Partner at Affinity Partners, added: "EGYM serves the large and rapidly growing global fitness and healthcare markets with a differentiated technology-centric model. We don't often come across companies with revenues in the triple-digit millions that are close to doubling in size year-over-year. In EGYM, we are backing an incredible team with a long track record of execution and success, and we look forward to supporting the company on its path to an IPO."
EGYM is well-positioned for the future after successfully overcoming the COVID pandemic and closing this investment round. Around 16,000 clubs worldwide use EGYM products and services, including many of the largest enterprise gym companies.
The multi-million investment has been widely reported internationally: