Today (Thursday), Arbox, a business management platform for gyms and studios, announced an end to its Bootstrapping phase as they secured a $2 million Seed investment from Pico Ventures.
All-in-one gym management platform
The Israeli startup provides a business management platform tailored for gyms and studios. From sales to accounting and even customer engagement, the platform allows gyms full control over its operation, while also providing its members with a personal training app.
Arbox developed the platform with a community in mind. They implemented different work-out functions, created a personal in-app training profile and social media like feed, as well as adding an option for inviting friends to get their pump on together. The Israeli startup went even further and adapted its platform to help gym owners meet the Ministry of Health’s guidelines and restrictions for reopening, following the COVID-19 virus shutdown.
In a conversation with Geektime, CEO Alen Debensason spoke about the company’s efforts despite the ill effects of the Coronavirus on the temporary closing down of gyms and studios. He continues to explain that even though the virus caused setbacks and shutdowns, the company was still able to raise the funds with the knowledge that once things reopen, then the industry will once again thrive. “In general, the fitness industry has experienced a 7% increase every year due to higher social enlightenment regarding health and fitness, and the COVID virus only further strengthened this.”
How did the COVID-19 crisis and lockdown affect your business model?
“We mostly saw it strengthen our business model. Most of our customers stayed with us even during the time their gyms were closed. They understood the advantage of using our platform as a way to keep in touch with their customers as well as a system containing invaluable data for better running their business. Of course, we also added new features, like online training sessions that allowed gyms to create another stream of revenue during times when their gyms laid empty. "
Debensason goes on to note that they barely lost any customers during the last few months, and the ones that did bail were gyms that didn’t survive the lockdown anyways. He explains that they adjusted the platform, to assist gyms and studios to limit the number of members on-site while also including on the app a daily health declaration, in order to meet new government regulations.
When speaking on their latest funding round, Debensason says: “We are very excited about our first Seed funding round, and believe this is the first major step towards conquering international markets. Arbox offers this industry an essential toolbox to handle operations under crisis and strict regulations, as well as be productive during the normal day-to-day routine.”
Arbox, which was founded in 2015 by Debensason and CPO Ran Lev, operated as a bootstrap company during its early stages, basically until today, when they received their first major investment. In a growing $100 billion industry, the company notes that the raised funds will go towards further expansion into global markets. Already supporting over half a million end users, the company’s main goal is to enter the coveted U.S. fitness market.