WellnessLiving – a cloud-based business management software provider and payments platform for fitness operators – has raised US$66m. A partnership with McCarthy Capital generated US$46m and CIBC Innovation Banking provided an additional US$20m.
The collaboration will help to drive the company’s international expansion and product development, which includes features to support franchises and businesses that operate across multiple sites. It will also support future partnership and acquisition opportunities.
“McCarthy Capital has a proven history of scaling software businesses, and we are excited to further accelerate WellnessLiving's growth trajectory with their support,” said Len Fridman, WellnessLiving's co-founder and CEO. “This partnership comes at a great inflection point for WellnessLiving as we continue to add new customers at record-breaking levels to our platform and help each one of them reach their performance potential and realise their entrepreneurial dreams.”
As a result of the union, Chase Meyer, a partner McCarthy Capital, and senior associate Thomas Sudyka have joined WellnessLiving’s board.
“We are thrilled to partner with the management team of WellnessLiving," said Meyer. "We believe their customer-centric approach is critical for long-term value creation – both for WellnessLiving and their customers – and we look forward to partnering with WellnessLiving as they continue to invest in their people and product.”
According to Fridman, the board will also bring on Brice Scheschuk, managing partner at Globalive Capital, which also contributed, and Dan Houghton, CEO of Buildertrend will join as board advisor.
WellnessLiving has over 15 million users worldwide in markets such as North America, Europe, Australia and New Zealand. Back in 2018 the company secured a US$2.4m investment from BDC Capital which grew the company from two founders (Fridman and COO Sasha Davids) to 200.
Earlier this month – in reaction to IHRSA’s report that 30 per cent of US studios closed during the pandemic – the company launched the #StandwithStudios Grant Program. US$160,000 will be offered in grants, marketing support and software to 16 studios. Applications are being accepted on standwithstudios.com until 15 December 2022.
