Chinese gym operator SuperMonkey raises $53.5m

Established in 2014, the company operates two kinds of gyms: 24-hour self-service “gymbox” units, which are containers with about 50 square meters of space; and studios for group use of 100-300 square meters. Users for both services make reservations and payments via the company’s app.

Unlike traditional gym chains, SuperMonkey does not offer monthly or yearly memberships, rather operating on a pay-as-you-go basis. While average prices are higher than those charged by traditional peers, the company to attract more white-collar professionals aged 25-40, who don’t want to pay for a full membership due to busy work schedules.

SuperMonkey has opened 70 outlets in nine cities, including Beijing, Shanghai and Shenzhen, and its eventual aim is to become a lifestyle brand that sells products such as gym clothes, food, and equipment. It also plans to introduce private coaching classes this year and expand its footprint to 100 locations across China.

The company raised its angel round from PreAngel Fund in 2015 and received RMB10 million the same year in a second round from Greenwoods Investment.

In 2016, Fosun Group’s PE arm, Fosun RZ Capital, then named Kinzon Capital, invested in the company. It teamed up with Arena Capital and Ventech Capital China to commit RMB50 million in 2017. All three re-upped in a new round later that year, with Sequoia Capital China coming in as a new investor.

The gym industry in China has developed rapidly in recent years due to increasing disposable incomes and health awareness. The industry, estimated by Euromonitor International to be worth about $6 billion, is highly fragmented with a range of international and domestic players of varying sizes.

Some 10,000 large-scale gyms were operating across mainland China as of the end of 2016, together with more than 10,000 small-scale fitness studios, according to Qianzhan Industry Research Institute.

Recent private equity activity in this space includes an investment by L Catterton Asia in Will’s Group, a China-based operator of fitness facilities and services in November.

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• Topics
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