Albion Capital, the leading independent investment manager, has led a £6.5 million Series A investment round in PayAsUGym (‘PAUG’), the online fitness marketplace, alongside existing co-investor Concentric and individual angels. The investment will be used to build the team, further enhance the product, grow the gym network and overall user base.
PAUG enables gym users to access a national network of thousands of health and fitness clubs, pools, classes and spas, on a flexible pay-as-you-go, short-term pass or unlimited membership basis. The company has rapidly expanded its range of venues since launch and now provides access to more than 2,700 venues, representing 32% of the UK market with at least one venue in 96% of all UK postcodes.
Albion Capital originally invested in PAUG in 2014 as part of a seed round. This Series A funding round is taking place following strong trading in Q1 2018, which saw PAUG increase gym payments by 91% year-on-year and total users of the monthly product by 107% year-on-year.
PAUG has capitalised on the changing market dynamics in the fitness market in the last 10 years, driven largely by the growing group of gym users who want more flexible access to fitness facilities and search online for gym membership, passes and classes. Societal trends have encouraged more active lifestyles, with the online digital world including social media bringing greater connection between those passionate about fitness and wellbeing.
Will Fraser-Allen, Deputy Managing Partner at Albion Capital, said: “PayAsUGym has built a formidable position as the market leader in the flexible fitness market. The company has scaled its offering impressively in recent years and is now the largest fitness marketplace in the UK by both revenue and supply. This Series A funding round follows a strong start to the year and we are excited to support Jamie Ward and his team with further investment.”
Jamie Ward, CEO and co-founder, PayAsUGym, says:
"It has been a fantastic start to 2018 and we're delighted with the strong support from our existing investors, led by Albion Capital, to fund the business through the next stage of growth.
“We're passionate about connecting people with fitness venues in the easiest and most flexible possible way. PayAsUGym's technology is driving increased gym participation by delivering for those of us that need that extra bit of flexibility in our lives and love using our smartphones to get the services we need. This funding allows us to not only grow the facilities we offer our members but to improve our product to ensure the ultimate experience."
For more information, please contact:
Jonathan Atkins/ Anthony Cornwell/ Matt Jones
Tel: 020 3697 4200
Notes to Editor
PayAsUGym is the UK’s largest fitness marketplace connecting members to fitness facilities throughout the UK. PayAsUGym partners with independent boutique fitness facilities and the UK's leading fitness brands with the aim of making working out easier and more flexible. PayAsUGym was co-founded by Jamie Ward and Neil Harmsworth in 2011 while the pair were training for long distance swimming and became frustrated at how difficult it was to use fitness facilities without fixed membership arrangements. PayAsUGym’s mission is to increase participation in fitness by making it easier and more flexible to work out.
Albion Capital is a leading independent investment manager with a long-term record of partnering ambitious business. The Albion Group has funds of just over £1 billion under investment management or administration and has increasingly focussed on technology, specifically software and tech enabled services with four Albion companies represented in the 2017 Sunday Times Tech Track 100. Albion Capital Group LLP is authorised and regulated by the Financial Conduct Authority.