Toutoushidao Capital, a Chinese investment fund co-established by a partner from Matrix Partners China, has teamed up with Huasheng Capital to lead a RMB100 million (US$14 million) series B funding round in Lefit, a Hangzhou-based new concept fitness start-up.
Existing investor IDG Capital, as well as new investors Puhua Capital and others also participated.
"We are optimistic about the future of Lefit and its business model, which is a perfect match for China's rising middle-class," said Wu Xiaopo, co-founder of Toutoushidao and a well-known financial writer in China.
Lefit, established in 2015, offers members flexible access to around 130 fitness gyms and 3,200 exercise instructors in five major cities for a RMB99 monthly fee.
Only 0.8% of the Chinese population visit fitness gyms regularly, compared to 17% in the U.S. This indicates enormous growth potential for fitness providers, the company said in an announcement.
Toutoushidao was founded in 2015 by Cao Guoxiong, a partner at Matrix Partners China, and Wu Xiaobo. The firm focuses on investing in China's cultural, media and entertainment sectors.