Gympass Rallies $220 Million for Its Corporate Wellness App

A woman lifting dumbbells at the gym.

Gympass, a health and wellness startup company, announced it raised $220 million to continue the growth and development of its corporate wellbeing app.

About the Business

Gympass is a Brazilian startup company that developed a corporate health and wellness app that partners with employers for a flat rate and offers various wellbeing resources to employees such as physical health, nutrition, and mental health. Through the app, users gain access to gyms, studios, virtual personal training, remote exercise classes, and other wellness apps.

The business offers its services to companies of all sizes. Businesses with one to 10 employees pay a flat rate of $150 per month. Prices vary for medium-sized businesses with more than 10 employees and large businesses with more than 1,000 employees. Once employees decide to utilize the app offered as an employee benefit, employees pay a discounted monthly subscription rate which ranges from $9.99 per month to $249.99. The more an employee pays, the more gyms, studios, and wellness apps they will have access to.

The startup has partnered with health and wellness companies like Curves, SoulCycle, Crunch Fitness, Nootric, Kwit, Happier You, Calm, and Mindshine. Some corporate customers of the company include WeWork, Etsy, and McDonald’s.

In addition to providing health and wellness benefits to employees, the business claims the app helps with overall productivity. The startup states employees who exercise regularly increase productivity by 30%. Additionally, employers who are subscribed to the app experience a 20% decrease in employee turnover.

$220 Million Investment

The business announced it raised $220 million in a Series E funding round led by Softbank. Other investors in this round include General Atlantic, Moore Strategic Ventures, Kaszek, and Valor Capital Group. This new funding round values the company at $2.2 billion.

According to a company statement, the startup grew tremendously during the COVID-19 pandemic. The business has gained more than 1,000 new customers since March 2020, and the app has seen an increase in use that has reached higher than pre-pandemic numbers.

Furthermore, the virtual health and wellness app partners of Gympass have amassed more than 3.5 million virtual wellness sessions since the beginning of the pandemic. The company also added that in May of this year, the app logged more than 4 million monthly visits — a new record for Gympass.

Cesar Carvalho, co-founder and CEO of the business, said in a press statement, “We’ve already seen a surge in gym and studio visits as countries begin to open up, and we fully expect even greater momentum as people head back to the office…Now, people are mixing in-person visits to gyms and boutique studios with digital, using meditation apps, nutrition offerings, in addition to other wellness offerings on the Gympass platform…”

With the new funding the company plans to expand its reach in the United States (US) and improve in-app experiences for customers. The startup also plans to explore new health and wellness categories to gauge potential for future product offerings on the Gympass app.

McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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