(Bloomberg) — Oakley Capital is weighing strategic options for female-focused fitness app Gymondo, including a possible merger, people familiar with the matter said.
The private equity firm and Gymondo founder Markan Karajica are also exploring potential partnerships or bolt-on acquisitions, the people said, to help keep the business competitive as gyms reopen after pandemic lockdowns.
Deliberations are ongoing and no final decisions have been taken, according to the people, who asked not to be identified discussing confidential information. A representative for Oakley declined to comment.
Fitness apps have proliferated as people spend more time maintaining their mental and physical health. They were in high demand during the coronavirus crisis, with gym closures forcing people to exercise at home or in parks and isolate from personal trainers.
But appetite for such app-based services has cooled in recent months as the pandemic subsides in many countries and gyms reopen. The fundraising environment for technology companies has also become more challenging.
Shares in Peloton Interactive Inc. tumbled to a record low this month after the online fitness group and pandemic darling cut its revenue guidance. Earlier in the year, its rival IFit Health & Fitness Inc. saw its value fall about 60% in a new funding round and announced a restructuring and redundancies.
Geared toward women, Gymondo offers professional fitness classes, ranging from yoga to high intensity training, and nutrition programs for a monthly charge. Its user base has grown rapidly over the last four years to roughly 570,000.
Oakley acquired the app as part of its 2020 takeover of German online fitness platform 7NXT GmbH. Gymondo generated earnings of 10 million euros ($10.6 million) on revenue of 30 million euros last year, the people said.
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