In a recent funding round, OxeFit, a manufacturer of luxury fitness training systems, acquired $17.5 million, with first-time equity investors Dave Asprey and Anne Mahlum participating in the round. Since being established in 2020 by Rab Shanableh and Peter Neuhaus, the total funding of the company now stands over $70 million. Shanableh, keeping the present valuation of the company confidential, stated that in every financing round, OxeFit has always seen an augmented valuation without any down rounds.
Anne Mahlum, founder of the fitness company Solidcore which has an extended presence across 25 states in the U.S. along with Washington D.C., sold her stake to a private equity firm, Kohlberg & Co., last year for $88 million. Concurrently, Dave Asprey is the owner of Upgrade Labs, a chain of fitness centers spread across Idaho, Texas, Utah, Washington, and Canada. Asprey proposes to incorporate OxeFit fitness centers within Upgrade Labs facilities.
OxeFit has previously seen investments from a string of professional athletes such as golfer Dustin Johnson, soccer player Harry Kane, Dallas Cowboys quarterback Dak Prescott, and hockey legend Wayne Gretzky. OxeFit’s unique approach does not involve paying the celebrity investors and providing equity for endorsements. Instead, experience with company technology has led to these investments, which is nothing short of selling the investors on the mission of the company.
The state-of-the-art fitness equipment XP1 and XS1 are software-driven, embedded with artificial intelligence, and geared to track data and progress towards fitness goals of the users. OxeFit’s plan for the recently-raised funding is primarily focused on enhancing this software capacity. The XP1 addresses commercial entities like fitness centers, rehabilitation facilities, sports training centers, apartment buildings, hotels, while the XS1 has a more compact build suitable for home use.
On offer are more than 280 strength exercises and six cardiovascular exercises and Pilates for the system users, who pay an initial substantial amount for the advanced equipment and a monthly fee thereafter for the software services, which includes an app and a gaming system. About 35% of OxeFit’s users are businesses, with the remaining 65% being individuals. The fundraiser aims to primarily enrich this software, thus revitalising fitness routines without falling into redundancy of equipment replacement.
Although reluctant to share the revenue details, Shanableh revealed that the company has observed a twofold boost in sales over the past year and anticipates a 50% to 100% increase in revenue in the coming years with improved recognition for XS1 and XP1, currently exclusively available on the company’s website. Another round of fundraising for an additional $20 million is in the pipeline for the next few months.
So far, funds have come from individual investors and family offices. However, OxeFit now welcomes funding for the first time from conventional venture capital firms and is on the lookout for a suitable VC partner. The goal is for these partners to align with the company’s mission, which includes a healthy attitude towards sports, health care, data, and AI.
