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EGYM, the Munich-based “smart workout solution” business, has secured a significant equity investment of €207 million ($225 million) led by Jared Kushner’s investment firm, Affinity Partners. The funding comes after a strong year of growth for the company, which offers a line of connected hardware, software, and a corporate health network operation called Wellpass.
A New Era for EGYM
EGYM’s business model focuses on improving healthcare outcomes by shifting the focus from repair to prevention. The company believes that many chronic conditions treated with medicine and related therapies could be prevented or managed better through regular exercise and healthier lifestyles.
CEO and co-founder Philipp Roesch-Schlanderer stated that the company aims to provide an AI-based trainer to every user, making the gym experience more effective and personalized. The company’s growth rate currently stands at 70% year-over-year, with Wellpass, a significant focus for the company, growing 100% in the same period.
A Strong Investment Amid a Difficult Year
Despite the general fundraising challenges in the tech sector, EGYM’s funding round is one of the largest to come out of Europe this year. The round was led by Affinity Partners, with participation from previous backers Mayfair Equity Partners and Bayern Kapital. The first tranche of the funding comes at a post-money valuation of €600 million.
EGYM’s Journey and Future Plans
Founded in 2010, EGYM has come a long way, even surviving near bankruptcy during the COVID-19 pandemic when gym activity came to a halt. The company’s business started with its own hardware coupled with basic usage measurements based on people exercising on EGYM’s own equipment. Over time, the company has incorporated more sophisticated tech into the mix, making the software work with other equipment.
EGYM plans to perfect its AI service in the next two years, which will significantly change the makeup of the business. The hardware/gym equipment part of the business currently accounts for only 25% of the company’s revenues.
As EGYM navigates the future, it plans to double down on newer markets like the U.S. and aims to become profitable while doubling overall revenues to $260 million in 2023. The company’s focus on AI-driven fitness solutions positions it at the forefront of the health and fitness industry’s transformation.
