"Exercise is murder," as the saying used to be, and 20 years ago, going to the gym wasn't a natural part of Germans' lifestyles. That has changed considerably. For a growing portion of German society, working out in fitness facilities is now part of everyday life and has established itself as an individual component of preventative health care. Guest article by Christina Cassala from VC Magazine.
This is also proven by the latest figures from a recent study conducted by the DSSV and Deloitte. According to the study, almost 9.5 million Germans are members of a gym.
“The fitness market has evolved from a niche to a mass market across all generations.”
says Philipp Roesch-Schlanderer, founder of the Munich-based company eGym. In keeping with this, eGym has also adopted the company's focus as its claim: “Make fitness your lifestyle”.
“I wanted something that could motivate even me.”
The company was founded in 2012. The founder had the idea four years earlier, during his studies in New York, while training in a dusty basement studio. He didn't enjoy it. He says of the idea: “I wanted something that could motivate even me.” He knows:
“Within the first three months of a membership, you decide whether the studio will become a part of your life or not.”
After 2.5 years, 40% cancel their membership, according to the study. eGym promises its users more effective training than ever before. This is achieved through greater user-friendliness and the product's functionality. Devices network with each other. The Munich-based company has therefore developed a technology for fitness equipment that allows steppers, cross trainers, and all other sweat-inducing fitness equipment to adapt to the user's needs. Instead of boring training routines, the app measures and determines the training sessions for each user.
This is possible by connecting the app to the respective equipment. Once logged in, the app measures your progress and adjusts the equipment for each visit. The downside: This is only possible with the help of specially designed equipment, which is why eGym is currently only available in select gym chains in Germany. It's now available in around 1,000 studios in a total of nine countries. Nevertheless: “The trainer remains an important contact person, we see ourselves as adding value” says Roesch-Schlanderer.
“eGym is a true growth company”
The company raised USD 15 million in 2014, including from Highland Capital Partners, Bavaria Capital and the High-Tech Gründerfonds. HPE Growth Capital also joined the company at the beginning of 2016 with a total investment of USD 45 million. The venture capital firm now holds approximately 171,000 shares, while Highland holds approximately 161,000 shares.
"eGym is a true growth company. The company has proven technology, offers a proven product, and boasts a successful business model."
Manfred Krikker of HPE explains the decision to invest in the company. Outlook “We will never be a studio operator”, says Roesch-Schlanderer. Therefore, the money will now be used to further develop the product. Time is needed for this, says the founder.
With new capital and know-how, the next step: USA
At the same time, preparations are underway for market entry into the USA. After all, the fitness market there is significantly larger – around 171,000 people go to a gym. “Of course there are many differences in the markets”, says Krikke.
"However, eGym offers a universal benefit for all athletes and consumers, regardless of geographic market. We are confident that eGym will also be able to establish itself in the USA."
