ClassPass, New York, has acquired Singapore-based competitor GuavaPass for $4.2 million, the companies recently announced. This news comes five months after ClassPass announced its strategy to expand in Southeast Asia.
GuavaPass, founded in 2015 by Rob Pachter and Jeffrey Liu, claims 840 studio partners across 11 major Asian markets, including Bangkok, Thailand; Beijing, China; Dubai, India; and Hong Kong. GuavaPass is ceasing operations in markets where ClassPass is currently available and will continue to operate in remaining markets until further notice, a media release said.
“We’re thrilled to acquire GuavaPass’ assets and select talent and continue building the biggest fitness membership for our customers, and the largest global network for our partners," ClassPass CEO Fritz Lanman said in the release. "This transaction will only accelerate our robust growth trajectory as we continue expanding throughout Asia and the Middle East. While acquiring competition is not part of our growth strategy, it’s clear that GuavaPass’ founders and team are committed to a common mission, and we look forward to welcoming them to ClassPass as we continue global expansion.”
In August 2018, ClassPass announced it had raised $85 million in series D venture capital financing as part of a global expansion strategy that will allow the health club subscription service company to enter new U.S. cities and the Southeast Asian market. The financing was led by Singapore-based investment company Temasek with participation from Connecticut-based private equity firm L Catterton's Growth Fund.
“To be acquired by an industry leader like ClassPass is a true testament to what we’ve built across Asia and the Middle East," Liu said in the release. “When my co-founder, Rob Pachter, and I started this company three years ago, our mission was to provide convenient access to top fitness experiences. ClassPass’ unrivaled talent and technology means that, together, we can take our common mission further.”
With the acquisition, ClassPass now operates in 80-plus markets across 15 countries. The company plans to expand its footprint into at least 50 new markets in 2019, the release said.
GuavaPass is only ClassPass' second major acquisition. Its first purchase was of FitMob in 2015.
“ClassPass is already the leading fitness aggregator in the U.S.,” Chloe Ross, ClassPass' vice president of international business, said in the release. “We’re doubling-down on our international expansion efforts with no intentions of slowing down in 2019. We’re excited to have Jeff, Rob and the GuavaPass team join us as we continue to take our peerless product worldwide.”