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The rise of weight loss drugs such as Ozempic and Wegovy has added momentum to Australian fitness technology company Evolt which has just raised $20 million in fresh capital to drive international growth ahead of a potential stock market listing.
The Gold Coast-based Evolt, formerly known as Evolt 360, has secured $20 million in fresh capital backed by existing investors Regal Funds and Washington Soul Pattinson (ASX: SOL).
The company, which has adopted a software-as-a-service model, has also attracted the interest of later-stage growth fund manager Perennial Partners in the capital raising that will help Evolt meet a strong pipeline of orders for its bioimpedance scanners.
Founded in 2015 by sports promoter Ed Zouroudis and fitness industry guru Kelly Weideman, Evolt has developed a range of medically graded machines that employ bioimpedance technology to provide comprehensive insights into body composition health.
This includes detailed insights into skeletal muscle mass, fat composition and body fat distribution, helping medical professionals manage weight loss with GLP-1 drugs such as Ozempic and Wegovy.
The company, which says it has the most sophisticated body scanning technology globally, has more than 2.8 million registered users across 46 countries.
Its bioimpedance scanners are registered with the US Food and Drug Administration and Australia’s Therapeutic Goods Administration, while they are also CE approved for distribution in the European Union.
Zouroudis, the Evolt CEO, says the $20 million capital raise is a “significant milestone” for the company which was recognised in the 2022 Gold Coast Young Entrepreneur Awards when Weideman won the coveted Trailblazer Award.
“We are incredibly grateful for the continued support of our existing investors and thrilled to welcome new partners like Perennial Partners to our journey,” he says.
“This capital injection will enable us to accelerate our growth strategy, strengthen our global presence, and bring our cutting-edge analytics to an even wider base of customers.”
Zouroudis says the company’s growth strategy is “anchored in forging strong partnerships both internationally and domestically”.
Among the most recent partnerships by Evolt was a supplier agreement sealed last year with GoodLife Fitness Canada, the fourth largest fitness club and gym operator in the world.
More recently, Evolt has signed up collaborations with cardiovascular medicine researchers in the US and has formed a partnership with an undisclosed “prominent telehealth provider” that is focused on weight-loss management.
“By aligning with leading medical, fitness and technology organisations, we’re able to expand our reach and enhance the value we provide to our users,” says Zouroudis.
“These strategic partnerships are key to scaling our impact, allowing us to integrate our technology across more clinics, gyms, and wellness centers worldwide, while ensuring that our innovative solutions continue to meet the evolving needs of the global health industry.”
Evolt has revealed that it conducted more than 2.3 million scans in FY24, representing a 57 per cent increase on the previous year.
The growing popularity of GLP-1 medications for diabetes and weight-loss management has helped drive some of that growth, as Evolt notes that the use of these drugs presents new challenges, among them the potential loss of muscle mass and bone density.
Evolt says its technology, which measures 40 key body health parameters, provides the "critical data" for medical professionals and patients to monitor these changes.
Zouroudis sees Evolt’s technology having broad applications across multiple sectors.
“The initial uses of this technology are clear, but its full potential may not be realised for some time,” he says.
“We know that using this device can improve member retention for gyms and wellness centres, because it can show progress that may not be visible to the naked eye, emphasising that a particular training regime, treatment or therapy is having the desired effect.
“But as our recent agreements in the cardiovascular and weight-loss spaces demonstrate, the medical applications represent a massive opportunity for us.
“We have a very strong pipeline of orders and we’re already in 150 medispas and medical clinics across the United States, so we are building a strong foothold in that market as well.”
While Evolt has yet to firm plans for an IPO, the company is reported to be undertaking a roadshow to promote the business to investors over the next month in the wake of the latest capital raise.
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