It was recently reported that Payal Kadakia has an estimated net worth of $ 50 million and what is even more surprising is that he is just getting started. Many people wonder how he did it. He has a remarkable history and let’s take a closer look at how he managed to make a small fortune with ClassPass.
ClassPass is a membership service that has been designed to allow people who subscribe to the service to take advantage of a large selection of fitness classes. With so many interested in improving their health and getting fitter these days, it has been hugely successful and hasn’t been around for that long. It was founded by Payal Kadakia together with his co-founder Mary Biggins. Both women are only thirty-three years old and have already achieved tremendous success in their new startup that has taken off like wildfire.
How ClassPass works
ClassPass offers its members up to three classes per studio with an unlimited total number of fitness classes for a fee of one hundred and twenty-five dollars per month. This is a huge discount for most users because some pretty expensive fitness boutiques are participating. Not only do the benefits include great savings, but members can also get a taste of everything that is on offer regarding fitness programs in the vicinity. No wonder it has become a huge success.
Who is Payal Kadakia?
She is the co-founder and CEO of ClassPass. His parents emigrated to the United States from the western part of India. They are both chemists by profession. Payal attended New Jersey public schools, where she was a cheerleader for the soccer team. She had a passion for dance and did it in her spare time on weekends. Kadakia has a classical training in Indian dance. She is also self-taught in the Bollywood dance style and learned it by watching movies. He attended college and MIT majoring in economics and operations research. While in school, he launched an Indian dance company and after graduating from MIT he founded Sa Dance Company and is still actively involved in this endeavor to this day.
What prompted your decision to form a fitness service?
One night, while Payal was enjoying an evening at a local Starbucks planning her startup strategy, a robber accosted her and sprayed her with a mace and attempted to steal her. His intention was to steal your laptop. He managed to get his phone, but was interrupted by a Good Samaritan who scared him. It was at this point that little Payal decided that she needed to build a little more volume in order to better defend herself physically. This was what started his interest in starting a fitness-based business. The business expanded rapidly and is estimated to be worth $ 500 million.
The first try
Kadakia had already decided before the assault to form a new startup called Classtivity that focused on the mind and body. The start-up was almost a failure with less than a hundred classes booked through the service. Even low-cost promotions didn’t seem to keep customers engaged. He had his stroke of luck when he began signing deals with well-known and high-end fitness studios. These brought customers in by trucks. The business was initially launched in 2013 and in the three years it has been in operation the business is valued at $ 500 million. Forbes listed her as one of the 8 female entrepreneurs who are definitely on the rise.
Investors were also interested in ClassPass. They ended a Series B funding round last January raising $ 40 million in a campaign that was led by Thrive Capital and General Catalyst Partners. Investors awarded an additional $ 4 million in hedge funds in March with the promise of more as needed.
ClassPass, under the direction of Payals, now includes a lineup of a couple of hundred different studios in the New York City area. This makes the variety and discount membership service even more attractive to new prospects. Not to mention loyal subscribers who stay with the company at a fair price. Kadakia has expanded her company’s team to twenty-eight staff members to keep up with all the business they are getting. Thanks to venture capital from investors, the business has also included forty fitness centers in the San Francisco, California area, with recent launches in Los Angeles and Boston.
Payal Kadakia is an extraordinary young entrepreneur who has turned an experience …