Three years after raising €2m with Otium Capital, which has since become Eutopia, the five-studio indoor cycling specialist has set its sights on Europe and is looking to open more outlets. With this in mind, it has decided to extend its financing round by bringing in Experienced Capital.
The company was formed in 2015 under the name Let’s Ride by Nicolas Chabrier and Jonathan Garret. In 2016, the two directors decided to add to their two studios by acquiring the two outlets of their competitor Dynamo with the help of Eutopia, a spin-off of the family office of Smartbox founder Pierre-Edouard Sterin. They changed the name of the company to Dynamo, a name that enjoyed strong brand recognition.
Now with five studios across Paris, Dynamo provides one-hour indoor cycling sessions in the dark to music in the presence of a coach. The focus is on getting participants to release the pressures of their day and enjoy themselves. Upper body work-outs are also provided.
Dynamo is the epitome of a digital brand, building up recognition through an extensive social media presence, boosted by a community of influencers and ambassador coaches and helped by a high net promoter score.
It is a far cry from the low-cost fitness studios that have disrupted the fitness market in recent years, positioning itself as a premium brand with prices ranging between 20 and 27 euros a session.
Buoyed by demand for premium concepts, Dynamo wants to open 40 studios in Europe within the next five years and extend its range to boxing, yoga, Pilates and other specialised fitness activities.
Pax Corporate Finance was called on at the end of 2018 to find an investor with the capacity to help Dynamo achieve its development goals. French and European investors were quick to show an interest in the concept of specialised premium studios that can be applied to other disciplines. Experienced Capital was able to show Dynamo’s management that it embraced the company’s ambitions. Its accomplishments in brand and network development were also very convincing arguments.