Nigerian private equity firm Cardinal Stone Capital has sold its majority stake in i-Fitness, the country’s leading gym chain, to Verod Capital Management for $12 million.
This is a complete exit for Cardinal Stone, which had invested in i-Fitness in 2019.
Despite wider challenges in African private equity markets, there’s still a growing potential of the fitness industry in Nigeria.
Notably, exits in the continent fell by 73% in 2023 due to the economic downturn.
The private equity markets in Africa are facing a number of challenges, but despite this, the fitness industry in Nigeria is still showing signs of growth.
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It’s worth noting, however, that exits in the continent have seen a decline of 73% in the year 2023, which can be attributed to the ongoing economic downturn.
Despite this setback, there is still hope for the fitness industry in Nigeria and it could potentially offer lucrative investment opportunities for those willing to take the risk.
“This journey has been incredibly rewarding,” said Yomi Jemibewon, managing director of Cardinal Stone.
He highlighted the early belief in i-Fitness founder Foluso’s vision and overcoming obstacles like the COVID-19 shutdown.
Cardinal Stone, the first institutional investor in i-Fitness, supported the company’s growth, exceeding initial targets ahead of schedule. Cardinal Stone’s investment helped i-Fitness exceed its initial growth targets ahead of schedule, enabling the company to expand its operations and reach a wider customer base in the highly competitive fitness industry.
Founded in 2015, i-Fitness has grown to over 26,000 active subscribers across 21 branches in four Nigerian cities. They offer high-end equipment, personal training, and yoga, differentiating themselves in the market. Subscriptions range from $11.76 to $15.5 per month, depending on the location.
