STARTUPS

Temasek-backed fitness startup ClassPass acquires Asia rival GuavaPass

Singapore

CLASSPASS, the US-based fitness marketplace startup that provides users access to wellness classes and health clubs has acquired its Asia-based competitor GuavaPass as part of plans to grow its footprint in the region.

With the deal, ClassPass has acquired GuavaPass's operations in 11 cities across Asia including Singapore, Bangkok, Dubai, Hong Kong, Jakarta, Kuala Lumpur, among others.

ClassPass said in a statement: "GuavaPass founders Jeffrey Liu and Rob Pachter will join the ClassPass team, along with select GuavaPass talent, to further expand ClassPass' international presence."

The acquisition is expected to be completed by the end of January and GuavaPass will cease operations in markets where ClassPass is available.

However, in markets where ClassPass does not have a presence, the GuavaPass brand "will continue to operate under the ClassPass umbrella until further notice", ClassPass said.

The New York-based ClassPass first made its foray into the Singapore market in August 2018, about a fortnight after it announced raising US$85 million in Series D funding led by Singapore sovereign wealth fund Temasek Holdings with participation from the Growth Fund of US private equity firm L Catterton.

ClassPass operates a flat-rate monthly subscription billing service which includes credits that can be used for classes. In Singapore, users are given a cost-free one week trial. Monthly rates run between S$59-S$315.

With its acquisition of GuavaPass, ClassPass now operates in over 80 markets across 11 countries and has plans to launch in at least 50 new markets this year.

Said ClassPass chief executive officer Fritz Lanman: "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. This transaction will only accelerate our robust growth trajectory as we continue expanding throughout Asia and the Middle East."

"While acquiring competition was never 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."