Sydney-based technology investment firm Bailador Technology Investments (ASX: BTI) has seen a significant appreciation in its stake in fitness technology company Hapana, with the value increasing by 50% following a recent $17.3 million funding round. The fresh capital, co-led by Bailador and OIF Ventures, is earmarked to accelerate Hapana’s global expansion and the launch of its next-generation platform.
Significant Investment Boosts Hapana’s Valuation
Bailador invested $7.7 million in Hapana as part of the total $17.3 million Series A funding round, with OIF Ventures contributing $9.6 million. This investment, announced around August 12, 2024, has led to a revaluation of Bailador’s existing interest in Hapana, resulting in the reported 50% increase. Paul Wilson, Bailador Co-Founder and Managing Partner, is set to join the Hapana board as part of the investment.
Hapana: Powering the Global Fitness Industry
Hapana is a software-as-a-service (SaaS) platform providing essential business management solutions for the fitness and wellness sector. Founded in Sydney in 2014, the company offers an all-in-one platform that handles class scheduling, client memberships, billing, marketing, digital content, and real-time business performance monitoring for gyms and boutique fitness studios. Its white-label solution allows fitness brands to maintain their identity while leveraging Hapana’s technology to enhance operational efficiency and member engagement through a powerful mobile app.
The platform is currently utilized by over 1,000 clubs globally across 17 countries, supporting prominent brands such as Body Fit Training (BFT), KX Pilates, Strong Pilates, Gold’s Gym, UFC Gym, and F45. Hapana’s technology processed over half a billion dollars in payments last year, with more than one million fitness club members actively engaging with the platform.
Strategic Growth and International Expansion
The newly secured funds will be strategically deployed to fuel Hapana’s aggressive growth plans. A primary focus is to expand its global footprint, particularly strengthening its leadership position in the Asia-Pacific (APAC) region and growing its reach in the United States. Hapana CEO Jarron Aizen stated that the funds will enable the company to expand its go-to-market plans, facilitating the signing of more franchises and independent gyms.
Additionally, a significant portion of the investment will support the launch of Hapana’s second-generation platform, which is designed to build on its current technology stack, modernize the user experience, and add new functionality for large franchise fitness brands. This includes expanding payment channels to help brands enter new markets and scale their fitness concepts globally.
Bailador’s Investment Strategy
This investment in Hapana marks Bailador’s third new investment in recent months, following investments in Updoc and DASH. Bailador Technology Investments typically focuses on high-growth businesses within the technology sector, seeking companies with proven product-market fit, attractive unit economics, and significant market opportunities. The firm’s co-founders, David Kirk and Paul Wilson, highlighted Hapana’s high-quality founder and experienced executive team, operating in the large and fast-growing fitness software market. Bailador and OIF Ventures have a history of co-investing successfully, including in Instaclustr, which provided Bailador with a 14.2x multiple on invested capital upon its acquisition by NetApp in 2022.
