Learn more about convertible campaigns.
Everyone wants to stay healthy and active but we've found that…
1) The gym can become a boring routine and only keeps people engaged for a few weeks.
2) There is no easy way to find and book workouts whenever and wherever we want
3) We don’t want to be tied in with long term contracts or pay unnecessary joining fees.
Fitu brings much-needed flexibility to the fitness industry, giving you the freedom and convenience to book any physical activity that is happening around you, without the need for a membership! At the same time, we are helping fitness studios, gyms and trainers to generate extra revenue by filling up empty and unsold spots.
We find fitness activities for you, which you didn’t even know existed, giving you full access to what the city has to offer. Think activities like, disco yoga, outdoor bootcamps, salsa classes, kickboxing and so much more. All bookable in a single click!
Like many great ideas, Fitu was created by chance. Two friends, motivated to work out, bored by the gym routine and eager to try new ways to stay active in a big city.
But, like many people, we found it hard and time-consuming to find and book workouts that fit with our schedules. We were annoyed by the inflexibility of the industry, being tied to long term contracts and paying unnecessary sign-up fees. Besides, we noticed that many of the classes we attended were half empty. There were clear problems on both sides of the market that needed fixing.
There is a rapid increase in demand in the fitness industry for flexibility, online joining, no contracts, low costs and 24/7 access. Fitu combines all these desires in a single application.
We are currently witnessing a global shift from standard gym routines to more engaging and original group classes. A recent study from Les Mills shows we are currently witnessing a global shift from standard gym routines to more engaging and original group classes. With 46% of regular exercisers already doing fitness class activities, 76% say social interaction is one of the main drivers of this change.
This investment round is being raised by way of a convertible instrument.
The Key Terms are set out in the document attached to the campaign and summarised below:
• Discount – conversion at a 20% discount to the valuation set by a Trigger Event.
• Valuation cap of £3,000,000. Please note that the discount does not apply to the valuation cap.
• Shares will be issued on a Trigger Event, at the lower of: (i) the share price set by the Trigger Event less the Discount; and (ii) the valuation cap.
The Trigger Events include:
- A Qualifying Funding Round – defined as the Company raising investment capital of at least £600,000 from one transaction or a series of transactions, in exchange for the company issuing equity Shares; or
- A change of control transaction or IPO.
• The Longstop Date is 12 months from the date of the convertible agreement. If conversion has not been triggered by the Longstop Date, shares will be issued on the Longstop Date at a company valuation of £1,800,000.
• Shares will also be issued at an £1.8m valuation in the event of a winding up event prior to conversion.
Substantial accomplishments to date
The feedback from both the user and fitness provider side has outperformed our expectations. In just a few months’ time, we’ve managed to partner up with over 170 London studios, gyms and trainers, featuring a total of 460 unique weekly workouts.
We’ve been in stealth mode, perfecting our product based on our user feedback, but with minimal marketing efforts, we started getting a lot of traction, averaging over 500 monthly downloads in 2019.
Besides, we noticed that our users don’t just book once, but over half of them quite quickly book again, creating a very loyal community, ready to scale!
We’ve made all of this happen with little funding, working on the project full-time. In the current round, we’ve already secured funding from successful angel investors who can really add value to the company.
Some of our accomplishments:
- iOS App Beta Launch.
- Teaser Android App.
- Partnered up with over 170 London boutique fitness studios, gyms and trainers.
- Featuring over 460 unique weekly workouts.
- Runner-up in EO awards El Salvador - (A global peer-to-peer network of more than 12,000 influential business owners in 54 countries).
- Rated 4.9 out of 5 on the Apple App store.
- Over 10 influencers/ambassadors who are using Fitu as part of their daily lifestyle while sharing their love for our brand.
- Instagram fans: 6000+.
Short term release:
May 2019: Fitu Android 1.0.
We have a 3 staged plan in place to create 3 different revenue streams:
STAGE 1 - Commission model.
This current stage represents the core of Fitu’s business model. We take a cut of each activity booked through Fitu. At the end of each month, we transfer the totals to our partners, minus our commission.
STAGE 2 - SaaS Booking platform.
In Q4 2019 we’ll be launching this for fitness studios, gyms and trainers to create a steady source of MRR. While we built up a network of fitness providers, we’ve noticed a desire for a better and cost-friendly booking platform that seamlessly integrates with client websites.
STAGE 3 - Data monetisation.
Data is one of the most valuable resources in today’s world. Once Fitu has reached scale, we’ll have access to masses of data on industry trends and our partners' preferences. Combining this with the latest technology in machine learning and AI, we aim to make exercise cheaper and accessible for everyone. Besides, we believe it has the potential to become our main revenue stream in the form of cross-selling and ads.
Use of proceeds
The funds will be used to accelerate our growth, further penetrate the London market and expand to national and international cities!
We believe Fitu is relatively easy to scale to new cities. We plan to redirect our salesforce for one month to acquire 100 new partners in a new city. Then we will focus our online marketing efforts on that specific city and scale-up.
Fitu’s growth strategy is a textbook example of the network effect. We believe that the more activities we offer, the more users we’ll get. We then expect more users will equal more partners.
A large portion of the funds will be used for growth marketing - think highly targeted social media ads, influencer campaigns and creating viral loops with referral marketing.
The other main portion of the investment will be used for R&D, enabling us to add new features to the app, build the web platform and prepare Fitu for stages 2 and 3 of our monetisation strategy.
Join Fitu and be part of the future of the fitness industry!
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