Corporate Wellness Platform Gympass Accelerates Expansion With $85 Million Funding

Corporate wellness platform Gympass has secured $85 million in Series F funding to accelerate its growth globally.

The investment comes as the company increased its customer base in July by 80% to more than 15,000 corporate customers and surpassed 2 million employee subscribers across its network of more than 50,000 partners, Gympass said in a Wednesday (Aug. 23) press release. It gives the company a valuation of $2.4 billion.

“Our accelerated growth and new round of funding reflects validation of our model, that Gympass is uniquely positioned in any economic environment as companies seek innovative partners to reduce healthcare costs and improve employee wellbeing,” Gympass CEO and Co-founder Cesar Carvalho said in the release.

Gympass offers an employee benefit that encompasses a network of gyms, studios, classes, personal trainers and wellness apps, according to the release.

The company aims to empower employees on their wellness journey by providing a platform that fosters confidence, motivation and a sense of community, the release said. In addition, Gympass has formed partnerships with wellness organizations and expanded into non-physical wellness categories such as mental health, nutrition and financial wellness.

A study conducted by Gympass found that physically active employees can reduce company healthcare costs by 35% within a year, per the release.

Carolina Brochado, deputy head of the EQT Growth Advisory team, which led the funding round, said Gympass and its partners expand the market by reaching employees who may not otherwise have access to wellness activities.

In another recent move in this space, WebMD Health Services said in June that it plans to acquire Limeade to “re-energize” the market for employee well-being solutions. The new entity created by the acquisition will have more than 700 employees worldwide providing services dedicated to improving engagement, providing actionable insights, lowering health risks and reducing healthcare costs.

In February, employee wellness startup Spectrum.Life secured 5 million euros (about $5.34 million at the time) in fresh funding to further develop and scale its platform. The company incorporates elements of remote and in-person counseling services through its mobile app and on-site events.