The health and fitness industry is undergoing a remarkable transformation, with technology playing a pivotal role in reshaping how individuals engage with their wellness routines. At the forefront of this revolution is EGYM, a Munich-based startup that has successfully merged fitness equipment with cutting-edge personalized training technology. Recently, EGYM announced a significant funding milestone, securing over $200 million in a Series G round led by L Catterton and Meritech. This funding values the company at over $1.2 billion and positions it for accelerated growth in key markets like the U.K. and the U.S.
EGYM’s innovative approach extends beyond traditional gym equipment. The company has developed a unique fitness marketplace that connects gyms with corporate wellness programs, making it easier for employees to access fitness resources. According to CEO Philipp Roesch-Schlanderer, the funding will help expand their footprint in new territories, particularly following their acquisitions of Hussle and FitReserve. These moves not only enhance EGYM’s service offerings but also underscore the company’s ambition to cater to a broader audience seeking personalized fitness solutions.
One of EGYM’s standout features is its AI-based assistant, Genius, which was launched earlier this year. Contrary to the skepticism surrounding many AI applications, Roesch-Schlanderer emphasizes that Genius is designed to provide real value. The assistant tailors workout suggestions based on users’ past successes, behaviors, and fitness goals, effectively democratizing access to training guidance. With only 10% of gym-goers having access to personal trainers, the AI-driven solution serves as a practical alternative for millions looking to optimize their workouts.
Roesch-Schlanderer founded EGYM out of personal frustration with conventional gym experiences. He recognized a significant gap: many aspiring gym-goers struggle to start their fitness journeys, while even regular attendees often lack actionable data to enhance their routines or prevent injuries. To bridge this gap, EGYM created connected workout stations that not only track user activity but also integrate data from wearables, allowing for a comprehensive overview of fitness progress.
The company’s business model is predominantly B2B2C, partnering with gyms and corporate wellness programs rather than focusing on direct-to-consumer sales. This strategy has proven effective, with EGYM reporting profitability on an EBITDA basis and projecting revenues of $500 million by 2025. Their corporate network, Wellpass, boasts an impressive 17,000 sports partners, 14,000 corporate clients, and 3 million eligible employees—a testament to the demand for integrated fitness solutions.
As awareness grows around preventative healthcare, EGYM is tapping into a broader trend that emphasizes early intervention and proactive health management. Startups like Neko Health, co-founded by Spotify’s Daniel Ek, are also exploring innovative solutions that leverage AI for health diagnostics, reflecting an industry-wide shift towards holistic wellness.
Despite the current market challenges, including a slowdown in growth funding across Europe, EGYM’s substantial investment signals investor confidence in the potential of tech-driven fitness solutions. The company’s AI initiative, while still in its early stages, is built on machine learning models tailored specifically to workout dynamics, setting it apart from broader AI trends that often rely on large language models.
Roesch-Schlanderer’s approach to fundraising mirrors strategies employed by successful tech leaders. With a vision to double down on growth and embrace calculated risks, he sought out what he termed “dream investors” to support EGYM’s mission. This proactive stance is likely to pay dividends as the company navigates its next phase of expansion.
As fitness enthusiasts increasingly seek tailored experiences, EGYM stands poised to revolutionize the industry. By combining innovative technology with a commitment to enhancing user experiences, the startup is not just keeping pace with the evolving landscape but is also shaping it for the future. For those looking to improve their fitness journeys, EGYM’s integration of connected equipment, AI-driven support, and a robust corporate wellness network presents a promising avenue toward achieving health goals.