Foluso Ogunwale established i-Fitness in 2015, a budget-friendly gym chain in Nigeria. By 2019, CardinalStone Capital Advisers (CCA) acquired a 65% stake, marking the company’s inaugural institutional investment. During this period, i-Fitness boasted fewer than 3,000 members and employed 50 individuals across five locations in Lagos.
Ogunwale reflected on the collaboration with CCA, emphasizing the creation of both a thriving business and a lasting friendship. Despite facing challenges such as a six-month shutdown due to COVID-19 just ten weeks into their partnership, the team maintained a resilient mindset. Ogunwale expressed fulfillment in promoting fitness and positively impacting numerous lives.
Since its inception, i-Fitness has expanded significantly, garnering over 26,000 active subscribers and employing over 500 staff across 21 outlets in four Nigerian cities. As of February 2021, the company’s operational expenses totaled over ₦2 billion ($5.2 million), encompassing Lagos, Abuja, Port Harcourt, and Ibadan. Monthly subscription fees ranged from ₦19,890 ($12.38) to ₦24,890 ($15.5), with a one-time enrollment fee of ₦18,896 ($11.76) for new members.
Recently, Nigeria’s premier fitness chain, i-Fitness, underwent ownership transition as CCA divested its 65% stake to Verod, a private equity firm focused on African startups, for $12 million. Yomi Jemibewon, a Partner at CCA, expressed satisfaction in passing the baton to a trusted financial partner committed to advancing the journey initiated with Ogunwale. The move aligns with CCA’s vision of fostering SMEs into industry leaders with transformative impact.
Verod’s investment in i-Fitness, facilitated through its $200 million Capital Growth Fund III, closed in December 2019. The fund’s investment strategy targets middle-market growth companies across anglophone West Africa, spanning various sectors such as light manufacturing, consumer goods, business services, agriculture, education, healthcare, and financial services.
In a statement published by Bendada.com, Verod underscored the collaboration’s significance beyond financial investment. Both entities share a vision of promoting a healthier and more active West Africa, aiming to democratize fitness accessibility and affordability. The partnership seeks to instill a culture of well-being and empower communities through job creation and skills development.
Under Verod’s leadership, i-Fitness plans to embark on regional expansion initiatives, including facility renovations and targeted hiring programs, particularly focusing on women’s employment opportunities. The strategic vision underscores a commitment to enhancing fitness accessibility while fostering economic empowerment across West Africa.