EGYM Raises $225M From Jared Kushner’s Firm, Preps for IPO
EGYM CEO Philipp Roesch-Schlanderer shared that 2023 will be the fast-growing fit tech company’s first fully profitable year
EGYM has received €207 million ($225 million) in growth capital, having closed a financing round led by Affinity Partners, a global investment firm launched by Jared Kushner, the son-in-law and former advisor to Donald Trump.
The funding will enable EGYM to prepare for an IPO, EGYM’s co-founder and CEO Philipp Roesch-Schlanderer confirmed to Bloomberg News.
EGYM confirms that €107 million will flow “immediately,” with an additional €100 million available for future investments.
Along with Affinity Partners, existing investors Mayfair Equity Partners and Bayern Kapital also participated in EGYM’s recent funding round.
In a post on LinkedIn, Roesch-Schlanderer reflected on the recent years as challenging with COVID, gym closures and managing changing regulations and risks to customers while still hitting financial goals and delivering on EGYM’s innovation plans.
However, the fitness tech company can now enjoy the fruits of its labor, as Roesch-Schlanderer shared that 2023 will be EGYM’s first fully profitable year.
“I believe the near future will not be easy for growth tech financing, and I am incredibly proud that even in these times, EGYM could find such a great partner and secure this crucial investment,” he wrote. “Fresh money in the bank – while being profitable and fast-growing – forms a real financial fortress, something we promised all EGYMees following the COVID shock to our industry.”
The Munich-based company says that with the investment, it will focus on further developing its innovative digital solutions for health-focused workouts and expanding the EGYM Wellpass corporate health network. Corporate fitness, as Roesch-Schlanderer points out, will remain the most critical lever in driving healthcare from “repair to prevention.”
“For gym operators, we will accelerate our efforts to take the entire fitness industry online so EGYM can become the platform that allows fitness and health clubs to be leading players in transitioning the world’s largest market – healthcare – from repair to prevention,” Roesch-Schlanderer wrote.
Roesch-Schlanderer noted that Affinity Partners shares EGYM’s vision to digitize the fitness industry and that the planned massive expansion of EGYM Wellpass will help employers strengthen the well-being of their workforces.
“The Wellpass program is also an important incentive for companies in the increasing struggle to attract and retain employees,” he added. “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, commented on EGYM’s continued success.
“We don’t often come across companies with revenues in the triple-digit millions that are close to doubling in size year-over-year,” Naqvi told Bloomberg News. “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.”
Roesch-Schlanderer said EGYM is committed to continuing to serve gyms and doesn’t plan to get into the at-home fitness game at this time.
“We are busy for the next 20 years just with the gyms, so no need to think about home fitness,” Roesch-Schlanderer told Bloomberg News.
The North American unit of EGYM has also been growing at a rapid pace in recent years. In late 2022, the fit tech company reported year-over-year growth of over 200% in North America and announced plans to more than double again in 2023.
As EGYM’s General Manager for North America Dana Milkie pointed out, that growth has resulted from EGYM’s leading technology ecosystem, its “smart’ workout equipment, strong partner relationships and continued commitment to innovation.
EGYM secured $41 million in 2021 in a Series E funding round.
This story has been updated with additional information on EGYM’s plans to make use of its new funding
