Digital Fitness App FitOn Adds $40M, Acquires Peerfit

FitOn

FitOn, a digital fitness platform, raised $40M in Series C funding and acquired corporate wellness company Peerfit.

With a roster of celebrity instructors, freemium business model, and now an added focus on employer-sponsored workouts, FitOn is creating an omnichannel fitness bundle.

Fueling FitOn

Founded in 2019, FitOn was created by former Fitbit exec Lindsay Cook and her husband, AllTrails founder Russell Cook.

The app’s “freemium” model grants access to workouts ranging from yoga and barre to dance, cardio, and strength. A paid membership unlocks premium perks, from music to meal plans and more.

If this sounds familiar, it’s because FitOn just closed $18M in Series B funding in October 2021, with the Series C bringing total funding to $70M.

The latest round was led by Delta-v Capital, with participation from Accel, Second Avenue Partners, Maverick Ventures, and Mantis VC (the investment fund of The Chainsmokers).

A notable strategic investor, United Talent Agency also joined in. The move isn’t a surprise, as celebrity and star power have contributed to FitOn’s success.

The app features signature programs from Halle Berry, Lindsey Vonn, Julianne Hough, Gabrielle Union-Wade, and Cassey Ho.

Corporate Interests

Expanding on two fronts, FitOn’s acquisition of Peerfit opens the door to corporate wellness and omnichannel fitness. If all goes according to plan, employers and health plans will subsidize FitOn memberships, and users can access digital or in-person gym visits.

A growing opportunity, the global corporate wellness market is expected to top $94B by 2026. Taking notice, many fitness companies are targeting employee well-being:

  • Digital personal training app Future, which just raised $75M, is scaling up its enterprise sales operation.
  • Mindbody-owned ClassPass has ramped up its corporate wellness efforts, partnering with more than 2K employers.
  • After buying intellectual property from Peerfit, Peloton launched a B2B program in June 2021 after successful pilots with Accenture, Samsung, Nasdaq, and SAP.
  • Corporate well-being aggregator Gympass secured $225M at a $2.2B valuation in 2021 and surpassed 50K global partners.

Takeaway: FitOn is growing fast, claiming 2x user growth in the past year. But the threat of churn, competition, and rise in acquisition costs loom large in the fitness space. With Peerfit, FitOn hopes to boost paying subscribers on the corporate dime. As we expected, a new kind of fitness bundle is taking shape.