Corporate wellness start-up Gympass prepares for IPO with rebrand

Corporate wellness platform Gympass is rebranding as part of preparations for an initial public offering, after being valued at $2.4bn with backers including SoftBank and EQT.

The start-up said the change of name to Wellhub reflected its widening range of services, which alongside access to tens of thousands of third-party fitness centres also included partner apps for activities like sleep, meditation and diet. 

Co-founder and chief executive Cesar Carvalho described the revamp as an “important milestone” ahead of an expected stock market flotation. 

“We have begun preparations, we are doing the internal work and we have been for a long time running the business with the discipline of a public company,” he told the Financial Times in an interview. 

A listing venue has not yet been decided on but is likely to be in the US, Wellhub’s fastest-growing market, said Carvalho in his first public remarks about a potential IPO. 

Investment banks have yet to be appointed to work on the potential transaction, of which the timeframe remains under consideration. 

Established in 2012 in Carvalho’s homeland of Brazil, Wellhub signs up employers who can then offer the platform as a benefit to staff. 

The group does not own or operate gyms itself, but allows members to use in-person sports facilities as well as digital offerings like online classes and personal trainers.  

Now headquartered in New York, it has 2.7mn subscribers across 15,000 corporate clients, including blue-chip names like Amazon, Oracle and Activision Blizzard.

With a presence in 11 countries, Wellhub is a rare instance of a Latin American technology business accomplishing success outside of the region.

The company declined to disclose details of its financial performance but said revenue increased 70 per cent last year compared with 2022. Brazil remains the largest market with operations also in Mexico, Argentina, Chile, Spain, Germany, UK, Ireland, Romania and Italy.

Wellhub’s most recent funding round last year raised $85mn from investors led by EQT Growth, an arm of the European private equity giant, giving it a valuation of $2.4bn. 

That was an increase from the previous figure of $2.2bn in 2021 and came amid widespread “down rounds” — where a fundraise results in a lower equity valuation than the previous. Wellhub has raised a total $555mn to date. 

Other investors include General Atlantic, Neuberger Berman and Japanese tech conglomerate SoftBank. 

“We’re now getting close to 2,000 employees worldwide. The idea is to keep investing,” said Carvalho.