ClassPass raises $30 million in Series C funding

By | November 12, 2015

ClassPass, a fitness startup has announced it raising $30 million in Series C round of funding led by Google Ventures along with existing investors General Catalyst and Thrive. The new funding follows a $40 million raise announced in January.


Founded in 2013, ClassPass is a fitness startup with membership program for fitness classes across multiple gyms and studios making workout more accessible to wherever the user is. From the date of commencement, the startup has facilitated more than 1,500,000 reservations at 2,000 plus different classes in more than 20 markets around USA. For a monthly subscription of $125, it allows unlimited access to all kinds of fitness that includes yoga to dance to barre to jogging. Only disadvantage is that users can visit a particular class for not more than three times in a single month, so that ClassPass’  gym partners get new leads.

ClassPass founder and CEO Payal Kadakia said, “As we continue to rapidly grow, we have fundamentally changed the way people consumer fitness activities. We are not increasingly focused on improving and enhancing the ClassPass experience, providing our users a more personalized, robust membership and our studio partners tools and resources to better optimize and grow their businesses.”

Google got onboard seeing the good time for ClassPass. In the matter of two years, the startup has expanded to 35 cities, five of which are outside the USA. Also, the startup quite recently acquired its main competitor, Fitmob.

However, the ClassPass did face some issues like its customers complaining it is difficult to get into their preferred classes and its partners complaining that clients coming through ClassPass can have negative impact on regular clients. Also, it faced a huge blow when it increased its rates in July in New York City, causing some users to threaten to abandon the platform.

Despite of all these issues, ClassPass seems to be growing well in the market. It has booked 10 million classes through its system, claims the company.


  • Betty Greenwald

    classpass hurts fitness studios and our instructors lives. To pretend otherwise is wrong. In the end it will end poorly for fitness class members too.

    The smartest move Soulcycle made was staying a Premium Service and saying no to classpass.

    I have run studios for years. Classpass does not work for studios. Your membership will leave you for classpass once members learn they are paying double what the others in your classes are paying. Your user base will be very angry at you. Incremental revenue is the fantasy that classpass is selling. It does not work out that way. Members abandon studios for classpass. Your loyal user base will not be happy to learn that they are paying $25 and you just sold classes to classpass at $7-$10. You will become a $7-$10 an hour studio and will compete with every other $10 studio around you on a per class basis for users. You will be owned by classpass.


    article against Classpass in the New York Times:

    She would rather pay full price at SoulCycle than see the studio become even more crowded. “I’m like, ‘Please don’t join ClassPass,’ ” she said.

    Another explanatory article:

    Why Tula Yoga Studio Is Passing On Classpass


    Fitness Studios must not sign up with Classpass. It puts yours and everyone else’s fitness studio in danger. You cannot simply supplement your income with a little Classpass. That is the fantasy Classpass sells. Membership is critical to a Fitness Studio’s success or failure. Classpass takes this away. It is the money earned “no matter what” — the “recurring membership” that is critical to a fitness studio. Classpass takes this for itself when they take your members. A studio will need 10 regular new classpass members for every membership they lose. This is not happening and fitness studios are beginning to die. Users like Classpass just as they loved restaurant deals on Groupon. Restaurants dropped Groupon because it didnt work. Fitness studios are entering into a deal with the devil that they will not escape from because unlike a single Groupon deal… Classpass is recurring. When they take away your membership it will never come back. Classpass is a wolf in sheep’s clothing. They present themselves as a studio’s friend but really they are taking memberships away from studios. Until and unless Classpass institutes a rule to stop members leaving fitness studios to become members of classpass they are killing fitness studios. Classpass attempts to fake fitness studios out by their rule of only allow a member to go to a specific studio 3 times in a month but that only furthers the Classpass goal by getting members to go to many fitness studios belonging to nobody but Classpass. Already according to the CEO over 75% of Classpass members dropped their memberships with fitness studios to join classpass. By attempting to supplement a fitness studios income using Classpass a studio introduces classpass to all its members and teaches them to use Classpass.