ClassPass, a subscription based fitness training startup has acquired Singapore-based GuavaPass for an undisclosed amount. With the acquisition US company will get access to 11 Asian countries which includes Bangkok, Kuala Lampur, Jakarta, Mumbai, Hong Kong, Dubai, Shanghai, Manila, Abu Dhabi, Beijing including Singapore.
A statement by GuavaPass reiterates that ClassPass will absorb half of GuavaPass’s staff along with founders Jeffrey Liu and Rob Pachter. This is second in line acquisition for ClassPass after the American company acquired San Francisco based FitMob in 2015.
After the initial launch in 2012, ClassPass’s business model has seen rapid evolution. First the company focused on offering single –use passes for classes and then shifted to a subscription based model offering users unlimited access. This strategy after proving unsustainable was changed and tiers were introduced with hiked prices. Today the company is dabbling with a system which enables users with options to match and mix classes according to one’s liking and offers them credit to spend on classes.
ClassPass has been financed by $235 million. Although it is mostly active Canada, USA and Europe but it entered the Asian market with its entry in Singapore in August 2018. Reportedly, GuavaPass founders reached out to ClassPass and A deal was struck. GuavaPass was exploring many options including raising funding and expanding but it preferred to continue its mission as a part of ClassPass team, Said Company’s CEO Fritz Lanman as Part of the company’s statement after the acquisition.
The acquisition has implanted ClassPass in 80 markets with plans to launch in 50 new markets. The acquisition has heightened rivalry between ClassPass and Kfit. Kfit is a Sequoia-backed fitness subscription company based in Kuala Lampur.
The acquisition was a major strategic move by ClassPass as it tries to expand its business in Asia and Middle East. When asked about the future acquisitions, Mr. Lanman replied that the GuavaPass Acquisition was not part of a wider strategy of expansion by acquisition and more of seizing the right opportunities. He clarified that the company is not planning any major acquisitions after this in the near future.
The Company was founded by Payal Kadakia, a Massachusetts Institute of Technology graduate after having worked for Warner Music Group and Bay & Company. The Idea for the startup evolved out of a need for easier finding and booking for fitness classes.