ClassPass is close to closing a new round of funding led by Temasek and M13, according to sources familiar with the situation. The round has at least $35 million committed and is likely to top $50 million, sources said. It values the company around or slightly higher than ClassPass’s last round of funding. In 2015, investors valued the company at $400 million.
Temasek is Singapore’s state-owned investment arm. Los Angeles-based M13 identifies itself as “a brand development and investment company” focused on consumer products, technology and media. Founded by brothers Carter and Courtney Reum (known for creating VeeV Vodka), the firm’s website touts investments in Pinterest, Bonobos, Slack, SpaceX, Thrive Market, Hyperloop, Blue Bottle Coffee, Warby Parker, Birchbox, Lyft and Snap.
ClassPass recently named Fritz Lanman its CEO, replacing founder Payal Kadakia, who is now executive chairman. The company, which offers fitness classes via monthly memberships, has endured controversy over changes to its business model and prices in recent years. But one source says the company has emerged from a rocky couple of years with a growing set of subscribers and “unit economics that are surprisingly good. The company no longer has any customers it loses money on.
Fortune’s Polina Marinova wrote in March:
ClassPass declined to comment.