Two more sources shared that the deal size was less than $6
million.
A spokesperson for CCA disputed the value of the transaction
calling it “incorrect” but declined to provide further details for
confidentiality reasons.
The deal comes when questions about exit events in African
startups continue to be asked. Exits in Africa’s private capital market fell by
73% in 2023 against a backdrop of inflation and currency devaluation across the
continent.
“This has been an extremely exciting and rewarding journey
for us,” said Yomi Jemibewon, Managing Director of Cardinal Stone.
“From believing in and supporting Foluso’s [iFitness’
founder] vision when others wouldn’t; to weathering the storm of a 6-month
Covid-19 shut-down only three months after investing; and then exceeding our
growth and impact objectives 12 months ahead of schedule.”
Cardinal Stone, the first institutional investor in
i-Fitness, typically invests between $5 million and $10 million in portfolio
companies across various sectors in Ghana and Nigeria. The firm invested in
iFitness in 2019, and by 2021, the fitness company said it had spent ₦2 billion
($5.2 million) on its operations when it opened its 10th branch in Lagos.
In 2021, the gym had 8,000 members and projected it would
reach 100,000 subscribers by the end of 2024. i-Fitness currently has over
26,000 active subscribers, meaning it must grow more than 4x this year to meet
its projection. The gym has 21 branches in four Nigerian cities, with 18
branches in Lagos.
Members can train in any of these branches with an app that
serves as a pass into the gym. The gym offers its members high-end equipment,
personal trainers and yoga instructors, making it a standout in Nigeria’s
relatively small fitness industry.
Launched in 2015, i-Fitness operates with different
subscription fees across its branches. In Lagos, Port Harcourt and Abuja,
Nigeria’s commercial hubs, subscribers pay a monthly subscription fee of
₦24,890 ($15.5) while new subscribers pay a one-time fee of ₦18,896 ($11.76).
In Ibadan, Nigeria’s second-largest city, the subscription fee drops to ₦19,890
($12.38).
Rand Merchant Bank Nigeria Limited (RMB) and CardinalStone
Partners Limited (CSP) acted as joint financial advisors on the sale, while Udo
Udoma & Belo-Osagie (UUBO) acted as legal counsel to Cardinal Stone on the
transaction.