ClassPass is a boutique membership platform that offers members access to fitness classes.
Members can access its vast network of classes, gyms, and more via a single app.
Sounds interesting, right?
Well, investors agree — ClassPass became the decade’s first unicorn in 2020 when it raised $285 million in Series E funding.
The company’s growth has been quite a ride. After raising $85 million in 2019, ClassPass went on an expansion spree and now sells memberships in over 26 countries.
In this article, we’ll reveal the most interesting facts about this high-growth company.
Plus, learn how to get started growing your own 7-figure business with our FREE playbook!
| Company Name: | ClassPass |
| Year Founded: | 2013 |
| Founder: | Payal KakadiaMary Biggins |
| Valuation: | $1 billion |
| Industry: | Health Club Aggregator |
What is ClassPass?
ClassPass is a membership platform that provides access to fitness classes.
That’s an oversimplification, but that’s the fundamental idea.
Once you sign up for a membership, you can access over 25,000 gyms and studios.
You can take classes at some of the most popular studios, including Peloton, Anytime Fitness Gym, CorePower Yoga, and more.
In some countries, ClassPass lets you book salons, cryotherapy, meditation sessions, spa visits, and other wellness activities.
Who is the Founder of ClassPass?
Payal Kakadia and Mary Biggins co-founded this company in 2013.
During the early years, Payal partnered with Sanjiv Sanghavi. But Sanjiv parted ways with the brand in 2014.
What is the Origin Story of ClassPass?
Kakadia had a dancing career alongside her full-time job as the director of digital strategy and business development at Warner Music Group.
In 2011, she abandoned her plans to enroll in a business school and her full-time job to start a business.
Her first idea? Starting a dance company called Sa Dance.
She brainstormed a few ideas and finally created a fitness class search engine.
Kakadia built the app over the next year. But when Payal launched the app, it didn’t get the response she had hoped for.
She continued to rebuild the platform. As it evolved to its current form, multiple investors hopped on board. And that’s how ClassPass became one of the largest fitness platforms in the world.
How Has ClassPass Grown?
Here are some key milestones in the company’s growth trajectory:
- April 2016: Over 17 million fitness reservations booked.
- June 2017: Over 35 million fitness reservations booked.
- August 2017: Becomes available in 10 more U.S. cities.
- November 2017: Ranks #2 in Deloitte Fast 500 North America.
- January 2019: Acquires Guavapass for $4.2 million.
- October 2021: Mindbody acquires ClassPass for $500 million.
What is ClassPass’ Valuation?
The company is worth $1 billion according to the value at which Mindbody acquired it.
What Lessons Can Entrepreneurs Take From the ClassPass Brand Story?
Kakadia was expecting a baby while she was building ClassPass. She’s one of the few female founders to build a billion-dollar startup. And she did all this while dealing with contractions.
Her determination to build something that generates value is commendable. She built the company herself from scratch.
Sure, many others have contributed to ClassPass’ growth. But her foresight and direction helped ClassPass become the platform it is today.
Takeaway
This brand is the brainchild of a woman who wanted to start a business that involved dancing. That didn’t quite work out. But after a few pivots, Payal ended up with ClassPass — a fitness aggregating platform that clicked with Americans.
It’s now a billion-dollar business that operates across 26+ countries.
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