General Information

Number of existing shares before capital increase: 169'983
Maximum number of new shares: 25'000
Shares available for sale via the campaign: 25'000
Minimum capital increase: CHF CHF 0.576M
Max. possible capital increase: CHF 2.0M
Convertible loans of a total of CHF 326,311.55 / 3,747 shares will also be converted in this capital increase
Nominal value per share: CHF 1.00
Issue price per share: CHF 88.24

Type of shares available for sale:
Registered shares with voting rights. These are digital shares. There are no different share classes. The distribution of voting rights corresponds to the distribution of capital. By acquiring these new digital shares, you become a co-owner of Lucky Punch Holding AG.

Duration of the Campaign

18. - 20. October 2024: Funding Round for Employees only
21. October - 07. November 2024: Private Funding Round for LP Inner Circle (on invitation only)
08. - 10. November 2024: Funding Round for LP Community (with subscription only)
11. November - 06. December 2024: Public Funding Round

Valuation

Lucky Punch plans on raising CHF 2.0 million in equity financing at a pre-money valuation of CHF 15.0 million in a crowdfunding campaign with OOMNIUM. The additional capital would be used to finance the establishment of additional locations and expenses in marketing to acquire new members.

Lucky Punch Holding AG has been assessed by the independent consulting firm BV4. A detailed plausibility report is attached below.

Growth Strategy

Our plan includes opening additional flagship studios with an investment of CHF 2.0 million. While the investment climate in Switzerland is favorable and the demand is growing outside of Zurich, we recognize additional potential abroad. 11 flagship studios and sell 50 franchise locations are planed to establish by 2029. To expedite our growth, we are actively engaging with investors from our target market Dubai, Italy, South Africa and Berlin, positioning us to leverage a more conducive investment environment and accelerate our business development post-Series A.

Speed: Lucky Punch has a unique position in the market with its innovative use of headphones, which not only eliminates noise but also significantly reduces studio renovation costs. These advantages allows us to appeal to landlords and rapidly scale. To maximize these benefits, we are poised to swiftly tap into the burgeoning markets in Europe and the Middle East with top hotspot cities.
Talent Acquisition: Attracting top talent is crucial to executing our business strategy. Our flagship studio and growing brand reputation have enabled us to draw in exceptional talent. We are committed to expanding our team to support our growth trajectory.

Use of Funds

Lucky Punch is raising funds to drive its next phase of growth and expansion. The capital raised will be used to open new locations, enhance brand awareness both within Switzerland and internationally, further improve service offerings, and establish a franchise model by the end of 2025.

Business Model

Lucky Punch fulfills a significant demand in Zurich for high-energy, community-driven fitness experiences that go beyond the traditional gym environment. As a fitness boutique, we specialize in providing personalized, engaging workouts that blend the best of boxing, high-intensity interval training (HIIT), and strength training in a dynamic and motivating atmosphere.

Our revenue model is designed to maximize profitability through multiple income streams:

Memberships and Class Packages: Our primary source of income comes from selling memberships and class packages, offering flexible options to cater to different needs and commitment levels. Members can choose from monthly subscriptions, pay-per-class options, or longer-term packages, ensuring steady, recurring revenue.
Merchandising: We sell branded fitness gear, apparel, gloves, wraps, and other accessories, allowing members to represent the Lucky Punch brand while generating extra revenue.
Community Events and Parties

Mid-Term Development:

Corporate Classes and Memberships
Franchise Model
Food & Beverages
Body Recovery Services (i.e. breath work, ice baths)

By combining a compelling customer experience with diversified revenue streams, Lucky Punch aims to position itself as a leading fitness boutique in Europe, driving profitability and long-term success.

Facts & Figures

High growth potential: Increased monthly revenue in flagship studio Zurich from CHF 59k to CHF 156k in just 14 months, with average monthly target revenue of CHF 186k in 2025. In comparison, our competitor Xponential Fitness states an average monthly turnover of CHF 34k in the first two years of a newly opened studio.
Proven product-market-fit: Increased capacity by 88% from September 2022 to April 2024. Over the same time horizon, average monthly occupancy rate increased from 59% to 74%.
Community driven: Client base of +10k, with +450 recurring members.
Highly profitable and cash flow positive flagship: +60% gross margin and positive operational cash flow from start of flagship opening in Zurich.
Asset light: Opening of a single flagship studio requires an investment of around CHF 400-500k only, while competitors have to invest up to CHF 850k for a single studio.
Highly scalable franchise business: First inbound requests for Milan, Capetown, Saudia Arabia, Stockholm, Frankfurt, Munich etc. franchise already received from larger international player/s.
Market testing: Before entering a market, the market potential is tested through popups which require low capex investment before committing to full flagship studio investment. Dubai was tested through different locations such as SLS hotel and Aura Sky Pool among the others, while Berlin was tested through Soho House and Copenhagen will be tested through our partnership with 25H Hotels.

Historic Revenue Trend

Break-even for the holding is expected for 2025, primarily driven by current substantial investments in expanding our team and scouting and investing in new locations. These strategic investments are designed to accelerate the company’s growth in the mid-term, positioning us for increased market presence and long-term success.

Revenue and EBITDA Trend

Further business development is set to begin at the end of 2025 with the launch of our franchising model. This strategic move will allow us to expand our brand's presence more rapidly and efficiently, tapping into new markets with lower capital investment. By offering franchise opportunities, we aim to boost revenue, enhance brand recognition, and create a scalable growth model, ultimately increasing long-term value for our shareholders. Lucky Punch is growing at a rate that exceeds industry expectations, with year-to-date revenue growth of 32% as of August 2024.

Market Potential

The total serviceable addressable market in hotspots of Europe and the Middle East is over CHF 3.0 billion. Boutique Group Fitness Trends like Lucky Punch are taking over the fitness industry. Customers demand community feeling and flexible participation. Boutique memberships are growing over 70% annually worldwide. Boutique fitness studios are gaining high popularity, with 40% preferring them over traditional gyms, and 47% willing to pay more for boutique classes over traditional gyms.

The fitness industry is expected to grow by 7.7% annually from 2021 to 2030 due to increasing demand for health and wellness services. In comparison with studios of F45 and Xponential Fitness, Lucky Punch excels with quarterly sales per studio with CHF 377'000, 4.0 times higher than Xponential fitness and 7.3 times higher than F45. Furthermore, quarterly attendees per studio amount to 13’416, 2.4 times more than an average studio at F45.

Competitors Landscape

Two competitors opened about the same number of new studios in the last reported quarterly filings, namely 117 for F45 and 115 for Xponential Fitness. According to the management discussion in the quarterly filings, both companies confirm that Europe and the Middle East still provide an untapped market opportunity. However, F45 and Xponential fitness are still focused on the US, Australian and South American market.

Current Structure of Shareholders

The company was founded in 2020 and is headquartered in Zurich, Switzerland. Lucky Punch is organized as a holding structure which is a registered joint-stock company and the owner of the subsidiaries (Lucky Punch Zurich GmbH & Lucky Punch Fitness LLC in Dubai). The Lucky Punch Zurich GmbH is responsible for services for customers, e.g., boxing classes, while the holding Lucky Punch AG is responsible for management activities. As part of restructuring the holding company, all operating assets, related liabilities, and employees associated with the Zurich studio have been transferred to Lucky Punch Zurich GmbH in January 2024.

Potential exit value

Publicly listed International Fitness Franchise Operators currently trade at EBITDA multiples in the region of 10-12x forward EBITDA, while Global Gym Operators trade at lower single digit multiples of ca. 7-9x forward EBITDA. Under the assumption of today’s multiples and of achieving our growth and development plan, by 2028 we expect an exit valuation in a range of CHF 240-330m (i.e., 8-11x EBITDA 2028).
Based on current market conditions and the successful execution of our growth and development strategy, we foresee the potential for the company to reach an exit valuation in the range of CHF 240-330m, corresponding to an EBITDA multiple of 8-11x. This reflects the substantial opportunity we are targeting as we continue to grow and open new locations.
Assuming current market conditions and the successful realization of our growth strategy, we believe there is a strong potential to achieve an exit valuation between CHF 240-330m, based on an EBITDA multiple of 8-11x. This reflects the promising outlook for the business as we continue to scale and execute our plans.

Team

The core team consists of sports enthusiasts who combine vision, execution, business development and finance.

Chris Velkovski (Founder and CEO): The brain behind the vision with the right execution. Conceived the concept in 2019. Self-financing the company until 2021. Former founder of a consumer goods company with 7 years of experience in the startup and fitness industry. Swiss Academy of Fitness and Sport.

Daniel Dmitriouk (Co-Founder and Head of Product): A hardworking, ambitious and passionate sports enthusiast with a Bachelor's degree in Business Management. 5+ years of experience in the boutique fitness industry as a Master Trainer, having previously worked for major brands such as Technogym.

Denis Biscevic (CFO): Denis joined the team in July 2024 and brings over 12 years of experience in international B2C and B2B retail and a solid track record of driving profitability and successfully leading businesses through growth and exit strategies. With an MSc in Management and Accounting and as an ACCA member, Denis has the expertise to guide management and Lucky Punch on the path to dominance in the boutique fitness industry in Europe.

Antonia Pudney (Head of Marketing & Growth): A specialist in brand building, social media and creative management, Antonia Pudney has proven experience in the consumer market and fitness industry in the UK and Middle East. With an eye for growth marketing, she develops customer-focused digital marketing strategies for Lucky Punch.

Edward Elliott (Head of Franchise Growth): An experienced franchise and operations developer, Edward Elliott has over 24 years of business management experience. He has successfully led companies from start-ups to multi-million dollar enterprises and is committed to taking Lucky Punch into new markets.

Michele Tanke-Juska (Head of Operations Growth): A seasoned Head of Operations, Michele Tanke-Juska brings extensive experience optimizing operations at multiple boutique fitness studios. She has a solid track record of streamlining processes and improving profitability across 15 locations across the US (LA, New York, Boston, etc.).

Questions

If you have any questions, feel free to contact the Lucky Punch team via e-mail: info@luckypunch-boxing.com

Lucky Punch – Boxing Inspired Fitness Movement

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