In a bold move to flex muscles, Bailador Technology (ASX: BTI) has invested $7.7 million in Hapana Holdings, a software platform that promises to make gyms and fitness studios as efficient as a Swiss watch—or at least, that’s the idea.

Hapana offers an all-encompassing software solution for gyms and boutique fitness studios, enabling them to manage class scheduling, memberships, billing, marketing, digital content, and real-time performance tracking. The platform’s mobile app is designed to enhance communication and engagement with members, improving operational efficacy and user experience.

Operating in a global market of over 200,000 fitness centres, Hapana has already secured an imperative foothold, serving clients in 17 countries, including major brands like Body Fit Training (BFT), KX Pilates, Strong Pilates, Gold’s Gym, and F45. 

Under the leadership of Founder and CEO Jarron Aizen, Hapana’s vision focuses on providing superior services to fitness studios that have been underserved by larger competitors.

“These funds will enable us to expand our go-to market plans in the US and across the APAC region, facilitating the signing of more franchises and independent gyms,” said Aizen.

“By providing these businesses with a holistic technology solution, we allow them to focus on what they do best, helping their clients achieve their fitness goals.”

Bailador’s $7.7 million investment is part of a broader $17.3 million funding round by Hapana, alongside a $9.6 million investment from OIF Ventures. The two firms have previously collaborated; in their investment in Instaclustr, which resulted in Bailador exiting with a 14.2x multiple on invested capital and an 80% IRR in May 2022.

Paul Wilson, Bailador Co-Founder and Managing Partner, said: “Hapana has established a great reputation in the large and growing fitness industry. Bailador is backing Jarron and the strong Hapana team to continue executing on their growth in Australia and internationally.”

The capital will be used for product development, expanding onboarding and operations teams, and supporting international growth. As part of the investment, Wilson will join Hapana’s board. 

For the half-year ended on December 31, 2023, Bailador reported a net profit attributable to shareholders totaling $22.0 million, representing a $27.2 million increase on the previous corresponding period. This performance resulted in an interim dividend of 3.5 cents per share, fully franked.

Over the past 12 months, $29 million of capital was deployed across new and existing portfolio companies. This investment included $12 million in a new technology startup focused on AI-driven solutions, $8 million in expanding an existing health tech firm, and $9 million in scaling operations for a renewable energy company. 

The Company’s strategy of investing in a diverse range of sectors, from emerging technologies to established growth opportunities, reflects their commitment to broadening and strengthening their investment portfolio.

As of December 31, 2023, BTI had net cash of $94 million, positioning the Company well to capitalise on additional investment opportunities.