CLASS IS IN SESSION
ClassPass has finally reached unicorn status after its Series E fundraising round. Led by L Catterton and Apax Digital, the latest round raised $285M and will be used for international expansion.
ClassPass partners with fitness studios to allow users to book different workout classes from their smartphones. Read: its core demographic is chicks in yoga pants who talk like a Kardashian.
But the company has proven to be an innovator (a "disruptor," if you will) in the space. The company introduced a virtual currency credit system (not called ClassCoin … we checked) in 2017 so users could sign up and pay for classes. The “price” would fluctuate based on the demand of the classes vs. a fixed rate fee.
Lately, CP has turned its focus to international growth (it is available in 28 countries currently), partnerships with corporations (such as Morgan Stanley and Google), and expanding its product to wellness options (think: meditation).
The bottom line …
While the success of companies such as Peloton and Mirror (the workout one, not the one above your parent’s bed) may indicate that people just want to workout in the comfort of their own home, ClassPass’s business suggests otherwise.
Turns out that people still enjoy working out with other people, mixing in different classes … and the possibility of making bad decisions with that cute spin instructor.
ClassPass valued at $1 billion after recent fundraising round [Yahoo! Finance]