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This ‘antidote to modern gyms’ brand has just secured a £39m funding package

London-based gym chain Gymbox has secured a substantial new funding package as it plots further expansion across the capital.

The chain, which has been operating since 2003, has agreed £39m in new funding thanks to a combination of debt and equity finance from the Business Growth Fund and long-term backer HSBC.

BGF has provided £13m in equity, which brings its total investment in Gymbox to £25m, while HSBC are to provide a further £26m in debt finance to support the gym brand’s next stage of growth which will see it adding to its current line-up of eight London-base gyms.

This includes a new 42,000 sq ft gym in Farringdon, which will be the fitness brand’s biggest, boasting a three lane running track, Olympic sized boxing ring and London’s largest free weights area.

Chief Executive Officer and founder Richard Hilton said this new round of funding would help the business realise some of its aspirations, and add to its 22,000 members.

He said commented: “Gymbox continues to revolutionise the fitness industry by ensuring that working out is as much fun as going out. With this funding package and the ongoing support of my management team, BGF and HSBC, there is a lot more we can and want to do.”

Gymbox has experienced rapid growth in the last couple of years, with sites in Old Street, Westfield Stratford and Victoria all opening since BGF’s initial investment back in July 2014., while EBITDA almost doubled.

Meanwhile, revenues have swelled to £16m in the last 12 months as its ‘antidote to modern gyms’ concept, featuring colourful work-out areas and DJs, has proven popular with gym goers.

BGF investor, Alistair Brew, who has sat on the Gymbox board since 2014, added: “Gymbox continues to go from strength to strength. We are delighted to be supporting the team with further investment as it continues its roll-out.”

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