Montreal-based startup Silofit announced a $3.5 million seed extension Monday, adding to the $1 million it raised in 2019 through its initial funding round.
The startup also opened two new micro-gym locations in Toronto, and now operates eight locations in Montreal and Toronto.
“While most gyms are contracting because of the pandemic, we are accelerating our expansion plans given the demand we are seeing for our space.”
The extension, which included Toronto-based Alate Partners and existing investor, NFL’s Tampa Bay Buccaneers defensive end, Ndamukong Suh, notably closed in February. Silofit noted that Alate Partners, which supports companies in the real estate tech market and is backed by major Canadian developer Dream, signed on as a strategic investor.
The original funding was led by Whitecap Venture Partners and Courtside Ventures, with additional participation from Suh. Silofit claims to have raised a total of $4.6 million in funding since it was founded in 2018.
The startup converts small, unused office space into private micro-gyms that can be booked by fitness trainers or individuals on-demand or by the hour using its app. Gyms feature cardio equipment such as a bike and rowing machine, and weight options including a squat rack, cable machine, dumbbells, kettlebells, medicine balls, and TRX. The app helps locate a space and enables users to choose the date, time, and duration for a fitness session, while providing a unique access code to unlock the micro-gym’s door.
Silofit had planned on opening Toronto locations earlier in the year, however, in an interview with blogTO, the company’s marketing manager Charlotte Hamburg stated the pandemic delayed construction. Silofit’s first Toronto location opened last month.The startup claims the space has been fully booked since its opening, while the two new locations are completely booked for the next two weeks.
Toronto is currently in the red control level of Ontario’s COVID-19 response framework, which limits capacity at gyms containing weights or exercise machines to under 10 patrons. COVID-19 safety protocols are in place at Silofit locations, including the sanitization of each space between uses.
RELATED: Silofit raises $1 million seed round to develop “world’s first” network of on-demand gyms
“We launched our business in 2018 with a view to disrupting the out-of-home fitness industry,” said Wilfred Valenta, co-founder and CEO of Silofit. “And today, while most gyms are contracting because of the pandemic, we are accelerating our expansion plans given the demand we are seeing for our space.”
Earlier this year, Silofit opened three Montreal locations, adding to the two micro-gyms it opened in Montreal in 2019. This year, the startup has grown its team from four to 21 employees, and claimed it will be using the funding to expand to 20 locations across Montreal and Toronto, with an eye on opening a location in a major US market in 2021. The funding will also be used to build out Silofit’s software platform and service offering for personal trainers.
“In the past year, we have grown from two Silos to eight,” said Valenta. “And now, with the additional funding and strategic support from our investors – which are in the technology, sports, and real estate sectors – we are incredibly well positioned to continue on this path.”
UPDATE 16/11/2020: The funding amounts in this article have been updated based on updated information shared by a spokesperson for Silofit. It was previously incorrected stated that Silofit had raised a $2.5 million seed extension.
Image source Silofit via Facebook