Gympass raises US$300 million from SoftBank

Contxto – Brazilian unicorn and B2B fitness platform, Gympass, just secured US$300 million with Japanese conglomerate, SoftBank, leading the pack. With its US$5 billion Innovation Fund for Latin American startups, this is the megabank’s latest investment in the region.  

In Summary

Gympass raised the capital from SoftBank’s Vision Fund and previous investors such as General Atlantic, Valor and Atomico. However, the SoftBank Innovation Fund will eventually join the round. Much depends on authorizations and closing conditions.

These funds will help Gympass expand its offering to more gyms and reaching new international markets. Another goal is to enhance the Gympass platform with artificial intelligence.

“We believe this partnership will enable us to bring our solution to more organizations around the world, revolutionizing the way that employees engage in physical activity,” said Cesar Carvalho, Gympass co-founder and chief executive.

In-Depth

We covered this story when Gympass anticipated raising US$190 million from SoftBank in February, allegedly making it Brazil’s newest unicorn. Some reports claimed that Gympass reached a valuation of over US$1 billion following this transaction. However, Gympass Director of Content and PR in Latin America, Tatiana Sendin, confirmed that this was still speculative back then.

“At that time, the terms of the transaction with SoftBank weren’t closed yet,” said Sendin in an exclusive correspondence with Contxto. “There was no deal, no price, nothing. Now, we are coming to the market to share this important news that will help us in our journey to defeat inactivity worldwide.”

Sheena Alli, the Global Head of Client and Partner Marketing of Gympass, also confirmed this.

“This is the first time Gympass is confirming SoftBank as a new investor alongside General Atlantic, Valor Capital Group, and Atomico,” said Alli. “The support is truly a testament to our proven approach in successfully establishing long-term relationships with corporations and fitness partners who share the vision of a healthier, more active and productive world to defeat inactivity.”

Today, Gympass is present in 14 countries with around 47,000 gym and studio partners. Functioning as a B2B company, the Brazilian unicorn allows other corporations in providing gym memberships to its employees.

“Over 2,000 corporations worldwide are revolutionizing how inactive employees engage in physical activity to create a healthier, more engaged workforce,” said Murtaza Ahmed, partner at Softbank Investment Advisers. “Gympass is making this possible by delivering a unique, universal wellness program that connects employees to thousands of fitness options.”

-JA