How UK fitness app FIIT used Capchase to access efficient working capital
FIIT is a fitness tech app based in the UK that lets you stream interactive fitness classes straight to your devices like TV, smartphones, and smartwatches. Co-founder and CEO, Daniel Shellard, and his ex-Google colleagues founded the company in 2017. They ventured into the fitness segment by analyzing hundreds of tutorials and apps to understand the market and their potential competition. This process led to the birth of a holistic service which made fitness workouts accessible to everyone at their fingertips.
FIIT is available on all platforms, across devices and ecosystems, with courses ranging from HIIT, strength training, combat, yoga, pilates, and a constantly growing repository of health-oriented content.
FIIT is currently the highest-rated fitness application on the App Store and has ambitious plans to expand and reach out to more fitness enthusiasts. FIIT’s members in the UK have completed over 7.2 million classes on its app, which earned the company the ‘Netflix of Fitness’ recognition.
The fitness app considers dynamic content the crux of its product offering. Hence, the team produced the fitness video tutorial in-house from day one. As a result, they were able to recruit the right trainers and talent, which are integral to their rapid growth.
With a massive scaling up on the horizon, the company had no time to focus on getting working capital. There were funding options with the most complex payment structures, which did not suit the needs of FIIT. Moreover, the traditional routes claimed a percentage of FIIT’s revenue, which is a disadvantage for a company experiencing rapid growth. It put a dent on the balance sheets for FIIT before their next equity round. This is why FIIT wanted hassle-free access to working capital.
Capchase emerged as the ideal growth partner for FIIT as it allowed them to access the necessary amount of revenue financing, which has since doubled in line with FIIT’s growth. Having easy access to a large sum of working capital readily allowed FIIT to fuel their growth and adapt their financing strategy. This turned out to be a win-win situation for all the customers, the company, and the investors.
“We have previously struggled to find a working capital facility that works for our business. Offerings structured with repayments as a percentage of the top line penalized our rapid growth by accelerating repayments, making the solutions very costly and inefficient. Capchase provided a neat solution to this problem with fixed repayment profiles, sensible terms and fair and transparent pricing. The team have been great to work with - responsive and efficient with a very quick turnaround from the first point of contact to drawdown. We look forward to continuing our relationship as our business continues to evolve.”
FIIT has already grown 700% in the last 18 months. This growth is representative of a fruitful partnership between FIIT and Capchase. FIIT leveraged access to a large amount of working capital provided by Capchase to strategically expand their reach. The transparent pricing and calculable repayment allowed them to focus all their efforts on expanding their business without worrying about diluting their equity.