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ClassPass Pulls In $30M

2015-11-12
NEW YORK, NY, ClassPass, a fitness class subscription service, has raised $30 million in Series C funding.
According to Techcrunch, ClassPass, the fitness startup that lets you pay $125 for unlimited fitness classes from dozens of gyms and boutiques, has just confirmed to TechCrunch that it raised $30 million in Series C funding led by Google Ventures.

Existing investors, including General Catalyst and Thrive, also participated in the round.

VentureBeat first reported the news yesterday, but ClassPass founder and CEO Payal Kadakia confirmed the raise to TechCrunch.

'As we continue to rapidly grow, we have fundamentally changed the way people consume fitness activities,' said Kadakia. 'We're now increasingly focused on improving and enhancing the ClassPass experience, providing our users a more personalized, robust membership and our studio partners tools and resources to better optimize and grow their businesses.'

ClassPass works by letting users pay a subscription fee ($125/month) for unlimited access to all kinds of fitness classes in their area, from yoga to dance to barre to yogging.

The only limitation is that user's can only visit a particular type of class three times in a single month, ensuring that ClassPass's gym partners are always getting new leads. This is crucial, given that ClassPass operates its business based on wholesale prices for each of the classes it offers to users through the platform.

ClassPass originally launched as Classtivity out of Techstars. It was a search engine for fitness classes, that had little success, and eventually the company pivoted to the current model after Kadakia introduced an on-boarding tactic called the ClassPass, which offered 10 free for the first month at a steeply discounted cost.

From there, users were expected to start use the Classtivity search engine, but instead just tried to game the system for another month of the ClassPass.

The company never looked back after offering the ClassPass as a recurring product, acquiring its biggest competitor Fitmob in April of this year.

ClassPass users have made 11 million reservations on the platform since launch, and the product is available in 36 markets across three continents.

This latest $30 million in Series C funding brings ClassPass's total funding to $84 million.
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