Fitness platform ClassPass has raised $30 million in venture capital in a round led by Google Ventures, VentureBeat is reporting.
The company, which service used to be known as Classtivity, began offering a $50 pass that introduced users to ten different fitness classes every month, as a way to incentivize more purchases.
Since that strategy didn’t get students to return to studios, founder Payal Kadakia pivoted and in 2013, the company launched an unlimited pass called ClassPass. The new offering connected users with unlimited fitness, yoga, and dance classes for $99 per month. There is one catch though — it requires that users visit each studio three times a month. With the new arrangement, merchants got new customers, and consumers got a way to keep their workout varied, even while traveling.
Not everyone likes what ClassPass is doing. On one hand, some ClassPass customers have complained that it’s difficult to get into their preferred classes; and on the other, several studios noted that clients coming to classes through ClassPass can negatively impact the experience for regular clientele.
Nevertheless, the majority seems to like the deal, and so do Google and other investors. Perhaps, they have to thank ClassPass’ recent business moves for pretty much eliminating the competition — in April, the company acquired its main rival Fitmob, which itself bought a competing service Gymsurfing in February. So, it’s ClassPass’ market for the taking.
Previously, the company has raised $40 million Series B round led by General Catalyst and Thrive Capital.