GymNation opened its first gym in Al Quoz, Dubai, eight years ago. Last week, the group announced a $100 million cash injection from one of the world’s biggest asset managers.
Not bad going, by any stretch of the imagination.
The funding comes from HPS Investment Partners, part of BlackRock, and represents one of the largest private credit investments ever made into a GCC-born, founder-led consumer brand.
How is GymNation Planning to Use the Investment?
The $100 million will be used to accelerate GymNation’s ambitious global expansion plans and tighten its grip on the Middle East’s fitness market:
- More gyms across the GCC: The brand is targeting 100+ locations in the next three years, with a new regional HQ landing in Riyadh.
- Continued investment in its tech platform: GymNation plans to expand its use of AI and machine learning to power “industry-leading unit economics”.
- International expansion: Sharing news of the investment, GymNation CEO Loren Holland said, “We will soon be announcing our first expansion outside of the GCC, into Asia, which will represent an exciting new chapter of growth.”
What is GymNation’s Backstory?
Founded in 2018 by Loren Holland, Frank Afeaki, and Ant Martland, GymNation – often referred to as ‘The People’s Gym’ – was built on a simple premise: to build world-class gyms that people can actually afford.
They now have close to 50 locations and over 200,000 members across the UAE, Saudi Arabia, and Bahrain, making them the Middle East’s largest low-cost gym operator.
In 2023, the founding team led a management buyout, taking full control of the business with the support of regional partners Ruya Partners and Tricap Investments. This latest deal effectively marks Ruya Partners’ successful exit, with HPS stepping in as the new financing partner.
