Nigeria’s leading fitness chain, i-Fitness, underwent a significant ownership change this week, with West African private equity firm Verod acquiring a majority stake of 65% from CardinalStone in a deal worth $12 million.
Founded in 2015 by Foluso Ogunwale, i-Fitness emerged as a budget-friendly gym chain in Nigeria. In 2019, CardinalStone Capital Advisers (CCA) stepped in as the company’s first institutional investor, acquiring a 65% share.
Despite facing adversity, such as the COVID-19 pandemic which forced a six-month shutdown just ten weeks into their partnership, i-Fitness persevered. Ogunwale emphasised the resilience and growth mindset that characterised their journey, leading to significant expansion.
From humble beginnings with under 3,000 members and 50 employees across five locations in Lagos, i-Fitness has grown. As of February 2021, it boasts over 26,000 active subscribers and employs over 500 individuals across 21 facilities in four Nigerian cities.
The company reportedly expended over ₦2 billion ($5.2 million) operating across Lagos, Abuja, Port Harcourt, and Ibadan, with subscription rates ranging from ₦19,890 ($12.38) to ₦24,890 ($15.5) per month, alongside a one-time fee of ₦18,896 ($11.76) for new members.
Verod’s acquisition was facilitated through its $200 million Capital Growth Fund III, closed in December 2019.
The fund’s investment strategy focuses on nurturing middle-market growth companies in Anglophone West Africa, spanning diverse industries such as light manufacturing, consumer goods and services, business services, agriculture, education, healthcare, and financial services.
Beyond mere financial investment, Verod envisions a partnership with i-Fitness that transcends boundaries. Their joint mission aims to foster a healthier and more active West Africa, making fitness accessible and affordable while empowering communities through job creation and skills development.
Under Verod’s stewardship, i-Fitness sets its sights on regional expansion, intending to revamp existing facilities and implement targeted hiring initiatives, particularly emphasising opportunities for women.
This strategic move not only signifies a change in ownership but also heralds a new chapter of growth and empowerment for i-Fitness and its stakeholders.
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