Apr 4, 2024 - Health

Gympass changes name to Wellhub amid wellness boom

illustration of gympass and wellhub logos

Image: wellhub

Gympass is rebranding to Wellhub, the health-focused startup announced Thursday.

Why it matters: Valued at $2.4 billion as of last summer, the company is "pursuing a much bigger market," co-founder and CEO Cesar Carvalho tells Axios.

  • "Our name will be matching the ambition of our mission," he says.

Context: The company launched 12 years ago in Brazil to make it easier for people to buy day passes to different gyms for one fee.

  • Shortly afterward, Carvalho and his team pivoted the product to target corporations.
  • Companies now pay a monthly fee to use the platform, which allows employees to choose their own monthly plans to access fitness centers, digital classes and other benefits.

Zoom out: Wellhub is now "doubling down on nutrition, mindfulness, therapy, and sleep," Carvalho says.

  • "The push from employees for better wellness is only increasing" he says, citing research his company has conducted.
  • The company's revenue, which grew 70% year-over-year in 2023, is a reflection of that demand.

The big picture: Wellhub currently has more than 15,000 corporate clients and 2.7 million employees on its platform across 11 countries, including the U.S.

  • It just raised $85 million last summer in a Series F round at a $2.4 billion valuation, up from $2.2 billion in 2021.
  • Employees and earlier investors had an opportunity to sell some existing shares during its last fundraising.

The intrigue: Pickleball, emotional health and "healthy habit" services — such as routine tracker Fabulous and women's health monitor Clue — have been among the fastest growing services among U.S. workers over the last year.

What we're watching: Carvalho says he sees an IPO as a potential milestone in the future, but right now "we're focused on growing the business."

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