Bailador Technology Investments Backs Fitness Software Platform Hapana with $7.7M Investment
BTI (BTI) Share Update August 2024 Sunday 11th
Bailador Technology Investments Announces $7.7M Investment in Hapana
In a significant move for the fitness software industry, Bailador Technology Investments Limited (ASX: BTI) has announced a $7.7 million investment in Hapana Holdings Pty Ltd, a leading software platform for gyms and fitness studios.
Instant Summary:
- Bailador invests $7.7 million in Hapana.
- Hapana provides end-to-end management software for fitness studios.
- Hapana operates in 17 countries with a strong customer base.
- Funds will be used for product development and international expansion.
- Paul Wilson from Bailador will join Hapana's board.
Investment Details
Bailador Technology Investments Limited, an ASX-listed technology expansion capital fund, has announced a $7.7 million investment in Hapana Holdings Pty Ltd. Hapana is an end-to-end software platform that caters to the fitness and wellness sector, offering a range of features including class management, client memberships, billing, marketing, digital content, and real-time business performance monitoring.
The platform is utilized by gyms and boutique fitness studios to enhance engagement and communication with their members through a powerful mobile app. Hapana operates in a large and rapidly growing fitness software market, which includes over 200,000 gyms, health clubs, and boutique fitness studios worldwide. The company has already attracted high-quality customers across 17 countries, including well-known names like Body Fit Training, KX Pilates, Strong Pilates, Gold’s Gym, and F45.
Growth Potential
Despite its impressive growth rates and strong customer base, Hapana still has significant growth potential both domestically and internationally. The company is led by Founder and CEO Jarron Aizen, who has assembled an experienced executive team with expertise in the fitness software and payments industries. Jarron Aizen commented that the funds from this investment will enable Hapana to expand its go-to-market plans in the US and across the APAC region, signing more franchises and independent gyms.
The capital raise saw Bailador investing alongside OIF Ventures, which contributed $9.6 million, bringing the total investment round to $17.3 million. Bailador and OIF Ventures have a history of successful co-investments, including their previous investment in Instaclustr, which yielded a 14.2x multiple on invested capital and an 80% IRR upon exit in May 2022.
Use of Funds
The funds from this capital raise will be used by Hapana to accelerate product development, expand their onboarding and operations teams, and support continued growth in international markets. As part of Bailador’s investment, Paul Wilson, Co-Founder and Managing Partner of Bailador, will join Hapana’s board. Wilson expressed confidence in Hapana's potential, stating that the company has established a great reputation in the large and growing fitness industry.
This investment is likely to have a positive impact on both Bailador and Hapana. For Bailador, this investment represents a strategic move into the growing fitness software market, which could yield significant returns similar to their previous successful investments. For Hapana, the infusion of capital will enable them to accelerate their growth plans, enhance their product offerings, and expand their market presence internationally.
Investor Reaction:
Analysts are likely to view this investment favorably, given Bailador’s track record of successful investments in high-growth technology companies. The partnership with OIF Ventures and the addition of Paul Wilson to Hapana’s board further strengthen the prospects of this investment. Investors might be optimistic about the potential returns from this investment, considering the growth trajectory of the fitness software market.
Conclusion:
Investors should keep an eye on Bailador’s future updates regarding their investment in Hapana, as well as Hapana’s progress in expanding its market presence and product offerings. This investment highlights Bailador’s strategic approach to identifying and backing high-potential technology companies. Stay informed on the latest developments and consider the potential long-term benefits of this investment.