Mindbody ClassPass Plans to Go Public in 12-18 Months

The fitness and wellness platform aims for an IPO as it continues to see post-pandemic growth and technological advancements

Mindbody ClassPass is preparing to enter the public market within the next 12 to 18 months, according to CEO Fritz Lanman. The company, which has retained Goldman Sachs as its lead banker, is positioning itself for an initial public offering (IPO).

Mindbody , originally a public company in 2015, was taken private in 2019 by Vista Equity Partners in a $1.9 billion deal. In 2021, the company acquired ClassPass , a subscription-based platform for fitness classes, valuing the combined entity at approximately $3 billion at the time. This merger has since created a powerhouse in the fitness industry, combining Mindbody’s software services for fitness studios with ClassPass’s consumer-facing platform.

“We are essentially two distinct businesses under one umbrella, both of which are experiencing growth and profitability. This positions us well for an eventual IPO,” Lanman stated . He also noted that while Goldman Sachs is leading the process, additional lead bankers have yet to be selected.

The company’s last major funding round in 2021 saw a $500 million investment through a strategic convertible debt led by Sixth Street. This infusion of capital has supported continued growth, with Mindbody ClassPass expecting a 20% revenue increase in 2024, potentially reaching $500 million.

Lanman highlighted that ClassPass is now 65% larger than it was before the COVID-19 pandemic, reflecting a robust recovery in the demand for in-person fitness and wellness experiences.

The integration of artificial intelligence into the ClassPass app, which now also facilitates bookings for salon and spa services, represents the company’s broader strategy to enhance the customer experience and expand its market reach. This move underscores the increasing intersection of technology and fitness, a trend that is reshaping the industry landscape.

Lanman also pointed out that the IPO would primarily serve to provide liquidity for shareholders and support future mergers and acquisitions. With Vista Equity Partners as the largest shareholder, alongside venture capitalists like L Catterton, Temasek, General Catalyst, and Thrive Capital, the company is set for substantial growth as it prepares to enter the public market.

The anticipated IPO of Mindbody ClassPass is likely to be closely watched by industry stakeholders, as it represents a significant development in the ongoing evolution of the fitness and wellness market. The company’s trajectory could signal broader trends in the industry, particularly the role of technology and the integration of diverse wellness services under a unified brand.

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