With 30,000 partner academies and studios worldwide, US startup ClassPass has just landed in Brazil, home of rival Brazilian unicorn Gympass. In the United States, the platform is used by employees of companies such as Google, Facebook and Southwest Airlines.
Sought by LABS, the company explained that it chose Brazil as a gateway to Latin America because the country is the second largest fitness market in the world, after the US.
The startup’s global expansion began after a $85 million grant in July 2018, led by the Singapore-based investment firm Temasek, and which was also attended by L. Catterton, a private equity group that already has invested in fitness brands such as Pure Barre and Equinox Holdings.
According to Bloomberg, ClassPass has received $255 million in investments since its foundation in 2013, and has not yet reached its break even, meaning it’s not profitable yet.
The company currently operates in 2,500 cities in over 25 countries across Europe, Oceania, North America, and now Latin America with Brazil.
Asked about direct competition with Gympass in Brazil, the company said that in the last 18 months, it has established itself “as the leading global fitness and wellness membership” and sees as positive “when other services help to put a spotlight on fitness apps.”
Although it did not reveal how many partner establishments it has in the country, ClassPass named some of these studios and gyms for LABS in Sao Paulo (Pure Pilates, Action 360, Studio Mormaii, Ritual Gym, Race Bootcamp, Vidya Yoga, Jab House, Tone Gym , MyYoga, Ballet Fitness by Betina Dantase) and Rio de Janeiro (My Mood, Iron Box, Proforma, Puri Fitness, Ride Club, Pro Forma and Le Gym)–the two Brazilian cities where ClassPass is effectively operating at this first moment.
ClassPass also declined to inform LABS which Brazilian companies have already closed deals to offer the platform as an employee benefit. The company only stressed that the global companies it works with in the US also have offices in Brazil.
How ClassPass works
As early as 2018, ClassPass changed its subscription model, previously similar to Gympass’s, to one of credit-worthy subscriptions. In this model, each class has a credit value depending on the type of activity, establishment, and schedule.
In Brazil, ClassPass lands with the following plans: Go (15 credits for BRL 99); Base (30 credits for BRL 189); Core (50 credits for BRL 299); and Platinum (90 credits for BRL 499). Unused credits can be accumulated and used in the following month.
In addition to being a corporate benefit, ClassPass can also be used by anyone interested in using the application.
Besides classroom classes, ClassPass is also betting on online classes, in real-time (ClassPass Live) and on-demand (ClassPass Go) videos. According to the company, these services will also be available to Brazilian users, but for now, only with audio in English.