Fitness startup Fitmob recently began partnering with gyms and launching a monthly subscription plan, which has led to a huge jump in revenue. To accelerate that growth and expand into new cities, the company raised $5 million in funding.
Fitmob saw 5x revenue growth in the month from November to December, according to founder Raj Kapoor. That growth was due in part to its new subscription model and also its new business model, built around providing unlimited classes and gym trips for a flat $99 fee each month.
But the subscription model only really works if customers have tons of things to do. So Fitmob has been rapidly adding new gym and training studios. In the last three months, Fitmob has added more than 400 partners across seven cities, which includes the San Francisco Bay Area, San Jose, Austin, Dallas, Portland, Seattle, and Philadelphia.
The new funding was catalyzed by an AngelList Syndicate led by Paige Craig that raised $750,000 for the company from a total of 92 individual investors. Originally Fitmob was just looking to raise about $250,000, but after the syndicate reached its goal in a few hours, founder Kapoor agreed to have the cap raised to $500,000… and then again to $750,000.
Fitmob also received a fair amount of institutional interest, which allowed it to raise a total of $5 million. Participating investors include Mayfield Fund, Kapoor, Sean Moriarty, John Troiano, Arjun Rao, Jonah Goodhart, Powder & Fitness to the People, Phil Kaplan, Narendra Rocherolle, Vast Ventures, Craig, Expansion VC, BAM Ventures, Queensbridge Capital, Rocketship.vc, Mark Britto, Structure Capital, Venture51, Pi Capital, and Rachel Aram.
According to Kapoor, the new money will be used to expand into even more cities over the coming year. After working out the model in its home market, it’s now able to carry it forward as it seeks out and adds gyms and trainers to its marketplace.
Previously, Fitmob had raised a $9.75 million Series A round led by Mayfield, where Kapoor had previously been a VC, with Silicon Valley Bank and other angels investing.