ClassPass, the subscription service that for fitness classes and gyms, has today announced the close of a $ 70 million Series C funding round led by Temasek. Existing investors such as Acequia Capital, CRV, General Catalyst, GV, M13 and Thrive also participated in the round.
According to the press release, ClassPass has doubled its member base in the past year and has now grown to 35 million reservations to date.
ClassPass works by re-tooling the fitness business model. Users pay ClassPass for a monthly membership to the service, which gets them access to hundreds of boutique fitness classes and gym time. Plus, it gives users the added convenience of searching for and booking classes through a mobile app.
While the service has grown quickly, that’s not to say that ClassPass has had an easy journey.
The original iteration of the company, Classtivity, struggled to survive, and the first two years of the company were spent learning. Eventually, the team realized that simply providing discovery and booking didn’t necessarily lead to conversion. With the ClassPass subscription model, however, the company has continued to thrive.
That said, last year ClassPass was forced to raise prices to equal out the margins across all of its users — previously, low-usage users were subsidizing high-usage unlimited users, making it difficult to continue entering new markets in a sustainably healthy way.
Though the price hike cost the company ten percent of its users, it seems to have worked out well for the company, which has been growing its user numbers and its usage numbers ever since.
The company has also made recent leadership changes, appointing investor Fritz Lanman to CEO and moving former CEO and cofounder Payal Kadakia to Chairman of the Board.
The release states that ClassPass will be using this funding to invest in product and expand operations.
This latest round brings ClassPass’s total funding to $ 154 million in total.