Mindbody launches Mindbody Capital to help fuel recovery of the wellness industry

Leading wellness experience platform, Mindbody has announced the launch of Mindbody Capital, an offering specifically designed to provide wellness businesses with easy access to funding to power their operations however they see fit.

The investment arm of Mindbody will offer a similar financing solution as that developed by ecommerce platform Shopify and mobile payment company Square to prop up small businesses squeezed by shortfalls in cash flow.

Companies that participate in Mindbody Capital will receive non-recourse financing with a one-time capital fee, rather than loan subject to interest, which Mindbody believes makes it an offering unlike any other on the market.

Powered by fintech solutions company Parafin and accessed directly via the company’s software, the platform has already seen $2 million of interest-free funding accepted.

Josh McCarter, Chief Executive of Mindbody and ClassPass notes "as we watched our industry overcome the ups and downs of the pandemic, Mindbody dedicated our resources to supporting our customers with fee relief, advocacy efforts and enhanced educational resources. We knew we could do even more to help our customers recover and accelerate their growth as we exit the pandemic.

"Almost a third of Mindbody customers plan to expand their business into more locations in the next 12 months. Supporting these businesses in funding their growth is just one of the many ways Mindbody Capital can help the wellness industry rebuild."

Yoga London is one such wellness business already said to have taken advantage of a cash advance via Mindbody Capital, helping establish its operation as it built its community from a standing start.

Favad Malik, Founder of Yoga London notes "when I had the idea to found Yoga London, I knew one of my largest barriers would be funding the operation while I introduced the concept to my community. I chose to fund my business through Mindbody Capital because of its ease, accessibility and efficiency.

“Rather than a lengthy process required by traditional funding options, Mindbody Capital presented me with a reliable, pre-approved offer that could be funded as soon as the next day.

“This access to capital has been game-changing in helping my business thrive through the ability to expand as needed, run day-to-day operations and deploy creative strategies.”

The official launch of Mindbody Capital follows the acquisition of wellness subscription service ClassPass in October. At the time of that deal, Mindbody announced it had also secured a strategic investment of $500 million to “power a new era of wellness”.

Statistics show the wellness industry is not only rebounding but expanding. Data from ClassPass, part of the Mindbody portfolio, reveals that in-person reservations are up 27% since December 2021. Additionally, February 2022 saw the most ClassPass reservations since February 2020.

Looking to the future, 55% of Mindbody fitness customers estimate that attendance will be back to 100% of pre-pandemic levels by December 2022.

Click here to contact MINDBODY via their entry in the Australasian Leisure Management Supplier Directory.