ClassPass is doubling down on the expansion of its corporate business in Europe, after it raised $285 million in a transaction valuing the company at more than $1 billion.
The funds mostly came from L Catterton and Apax Digital Fund, taking the amount raised by ClassPass to about $540 million since it was launched in 2013. Temasek from Singapore, which led the previous fundraise of $85 million in July 2018, chipped in again for this Series E round. It’s widely anticipated that the next step for ClassPass in terms of financing is the stock exchange.
Chloe Ross, vice president in charge of the international business at ClassPass, said last week that the company would pursue the rapid international expansion that has taken the business from four to 28 countries since the previous fundraise 18 months ago.
Just one year ago, the U.K. was the only European market where ClassPass operated. It has since expanded to twelve European countries, adding the Netherlands, Germany, Austria, Switzerland, France, Spain, Portugal, Ireland and four Nordic countries.
“When I first came on board and I saw the rate of expansion they were targeting, it looked like a daunting task. The team has really pulled together and we’ve been delighted with the results pretty much everywhere we launched ClassPass,” Ross said.
“We go into markets with the goal of taking a leading position in studio and boutique studio fitness supply before we launch [...] and we have achieved that everywhere that we’ve launched,” she added. “We have feedback from our studio partners that we are already sending more reservation volumes than any of our nearest competitors [...] and we’re seeing very healthy double-digit monthly growth in all of these markets.”
Ross said that part of the plan with the extra resources provided by the fundraise is a continuation of that strategy in Europe. “We’re always looking at cities that seem to be primed for ClassPass and the value that we can bring to local fitness partners and customers there,” she said, adding that the pace should “very much the same” as last year.
ClassPass is preparing to take its service into two more markets in the next few months, and to target more cities in the European countries where it already operates.
Read the full interview in FNE#96.
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