Irvine-Based Xponential Fitness Revives Its Bid to Go Public

Francesca Billington

Francesca Billington is a freelance reporter. Prior to that, she was a general assignment reporter for dot.LA and has also reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. She graduated from Princeton in 2019 with a degree in anthropology.

Irvine-Based Xponential Fitness Revives Its Bid to Go Public

Venture capitalists are banking on the return of group workout classes and personal training.

Xponential Fitness Inc., the boutique fitness brand behind workout studios like Rumble and Pure Barre, has filed paperwork for an IPO.

The Irvine-based company announced that it's going public on Monday and will trade on the New York Stock Exchange under the ticker symbol XPOF.

The company, which listed its placeholder offering at $100 million. had been making plans to offer an initial public offering a year ago. But it was reportedly forced to put off those plans as the COVID crisis struck, forcing gyms across the world to shut down.

Bank of America Corp., Jefferies and Morgan Stanley are leading the deal. Pricing terms were not disclosed, but a Bloomberg report from April, citing unnamed sources, said it will be valued at close to $1.3 billion.

The company declined to comment on the company's IPO or Bloomberg's previous report.

Xponential pitches itself as the country's "largest boutique fitness franchisor." Since its founding in 2017, the company has built and acquired nine studios in 48 states and 10 countries outside the U.S., according to a statement announcing the IPO. As of March 2021, it operated 1,775 storefront locations, according to SEC paperwork.

The company acquired its first two workout brands in September 2017 and has since nabbed franchise partners including CycleBar, Stride and most recently, the boxing brand Rumble. Those acquisitions gave it access to training studio instructors and enabled the company to provide brands with marketing and tech support.

As vaccination rates pick up — and states ease restrictions on gyms and other indoor venues — the company predicts consumers will return to boutique, in-person fitness classes in the second half of 2021.

The pandemic stunted indoor workout companies across the nation. But as consumers stayed home to exercise, home gym equipment sales soared, according to Pitchbook data. Most VC investment in 2020 was driven by these at-home fitness products and technology like cycling bikes and activity-tracking wearables also hit a stride.

Xponential followed the trend, launching a digital platform and streaming free workouts on Facebook and Instagram. The company lost revenue but continued to open new studios and sell franchise licenses.

The global physical activity economy — the market including fitness tech and equipment among other categories — is expected to hit $1.1 trillion by 2023, according to a recent report from Pitchbook.

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Greater Good Health Raises $10 Million To Fix America’s Doctor Shortage

Keerthi Vedantam

Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.

Greater Good Health Raises $10 Million To Fix America’s Doctor Shortage
Courtesy of Greater Good Health

The pandemic highlighted what’s been a growing trend for years: Medical students are prioritizing high-paying specialty fields over primary care, leading to a shortage of primary care doctors who take care of a patient’s day-to-day health concerns. These physicians are a cornerstone of preventative health care, which when addressed can lower health care costs for patients, insurers and the government. But there’s a massive shortage of doctors all over the country, and the pipeline for primary care physicians is even weaker.

One local startup is offering a possible answer to this supply squeeze: nurse practitioners.

On Wednesday, Manhattan Beach-based Greater Good Health unveiled a $10 million Series A funding round led by LRVHealth, which adds to the startup’s $3 million seed round last year. The company employs nurse practitioners and pairs them with doctor’s offices and medical clinics; this allows nurse practitioners to take on patients who would otherwise have to wait weeks, or even months, to see a doctor.

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Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
PLUS Capital​’s Amanda Groves.
Courtesy of Amanda Groves.

On this episode of the L.A. Venture podcast, Amanda Groves talks about how PLUS Capital advises celebrity investors and why more high-profile individuals are choosing to invest instead of endorse.

As a partner at PLUS, Groves works with over 70 artists and athletes, helping to guide their investment strategies. PLUS advises their talent roster to combine their financial capital with their social capital and focus on five investment areas: the future of work, future of education, health and wellness, the conscious consumer and sustainability.

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David Shultz

David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.

Rivian Stock Roller Coaster Continues as Amazon Van Delivery Faces Delays
Courtesy of Rivian.

Rivian’s stock lost 7% yesterday on the back of news that the company could face delays in fulfilling Amazon’s order for a fleet of electric delivery vans due to legal issues with a supplier. The electric vehicle maker is suing Commercial Vehicle Group (CVG) over a pricing dispute related to the seats that the supplier promised, according to the Wall Street Journal.

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