Fitness marketplace brand ClassPass, which primarily uses a subscription model, has been acquired by Mindbody, the leading wellness-tech platform. The merged entity has received another investment of $500 million, courtesy of Sixth Street.
The terms and conditions of the all-stock deal have not been revealed till now. However, ClassPass had a $1 billion valuation after its $285 million round of funding back in January 2020. Sixth Street’s new investment will now add to the assistance from Vista Equity Partners which purchased Mindbody in February 2019, for a sum of $1.9 billion. ClassPass will be an independent brand in the future, enabling studios to set prices for their classes on the basis of diverse factors, making sure that customers pay for unique requirements.
Almost a third of studios at the company are still not deploying booking software solutions, according to the CEO at ClassPass, Fritz Lanman. The others will have scope for signing up with Mindbody, although it is not necessary. He also anticipates that the new company will build smoother integrations while creating better revenue scope for owners as well. Revenues at ClassPass came down by 95% in the lockdown, while the company had to lay off almost 50% of employees in April 2020. Lanman, however, stated that their services are now gaining more traction, especially due to pent-up consumer demand. Usage levels have gone up to 110% of pre-COVID figures at ClassPass.
