Australian scanning tech firm Evolt 360 completes $12m capital raise

Ed Zouroudis, Chief Executive Officer at Evolt 360

Evolt 360, the Australian developer of a proprietary body composition scanning technology, has successfully completed a $12m capital raise to meet its strong order pipeline. The raise, led by Bell Potter Securities, was backed by leading investors Regal Funds Management, Washington H Soul Pattinson and family office Smarter Capital. The funds will be used to significantly increase manufacturing of the Evolt 360 to fulfil existing enterprise contracts.

What is the market offering of Evolt 360?

The Evolt 360, an FDA / TGA / CE medically approved device, uses bioelectrical impedance analysis (BIA) to deliver users a reliable in-depth report capturing over 40 different body composition measurements. This simple to understand data allows a user to track detailed changes in their body composition and monitor the impact of their nutrition, exercise and fitness levels towards the achievement of personal health and wellbeing goals.

The Evolt 360’s measurements include breakdown of total weight, lean muscle mass, body fat including subcutaneous and visceral fat, skeletal mass and fluids. Evolt provides its clients with a cloud-based software solution “Evolt Insights” that enables detailed analytics of the member base and facilitates challenge-based programs that use before and after scanning to show progress made over the period and is a powerful membership engagement tool.

Each user is required to download the Evolt Active App which stores the users individual scan results and allows them to track their progress and body composition measurements. The app also supports engagement for education, diet and calorie / macronutrient profiling to better understand and track health & wellness goals. The business has seen tremendous growth since the reopening of the fitness industry post the shutdowns experienced.

What is the market growth of Evolt 360?

Evolt is experiencing strong growth in demand as a result of increasing awareness. The business has commercialised an industry leading body composition scanning tech. The Evolt 360, that is gaining broad acceptance from leading gym and fitness brands and is currently installed in 35 countries, showing both proven export capability and strong scalability.

For FY2023, the business had 125% growth in revenue and was profitable, installed the Evolt 360 in 1300 new sites which was 160% growth on the prior year, performed >850,000 scans and now has over one million registered users, a across 35 countries.

Future growth is underpinned by a roll-out to significant global enterprise clients including the largest gym chain Anytime Fitness, chemist and vitamin store chains and with health insurers like HCF who implement the Evolt 360 with its corporate health customers throughout Australia. The firm also has sold their solution direct to support corporate clients in global mining companies, leading international medical universities and allied health professionals.

What were the executive’s thoughts on the funding?

CEO Ed Zouroudis said the global addressable market for the solution was enormous. “From gyms to health insurers, retail outlets like chemists, vitamin and supplement stores and more recently to medical general practices, medical specialists who focus on obesity, diabetes and age-related degenerative conditions, we provide data across multiple verticals,” he said.

“The gym industry alone was worth $97 billion in 2021, with an estimated 250,000 sites, and we solve the biggest problems gyms have at the moment, which is lowering the churn of memberships, increasing engagement and identifying the most valuable metric in their business, the health status of their members. This health status can accurately quantify the impact of a particular program to help members achieve their desired goals,” he added.

“Our tech also provides nutritional and supplement programs that can add a significant revenue stream to our partners.” Evolt 360 was founded in 2015 by Ed Zouroudis, a health and fitness industry expert and sports promoter, and wellness guru Kelly Weideman. Former Virgin Group and Wesfarmers executive David Baxby leads its advisory board.

Zouroudis said seeing such good support for the raise was pleasing and provided strong validation for the firm’s market opportunity and strategy. “It’s fantastic that we’ve been backed by a number of Australia’s known institutional investors – it’s a huge testament to the scale of the opportunity we address and we are very grateful for their support,” he said.

“It is unbelievable to me that some gyms only offer a set of scales…when the Evolt solution offers their members so much more valuable information. We have assembled an incredible team that shares our passion to support people in achieving their health and fitness goals.”

“Every day I get a kick out of seeing our gym partners share the results achieved by their members on our Instagram. The transformations are just amazing and that motivates us to keep on delivering enhancements to our technology to support their goals,” he concluded.

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