Edgard Corona completed one of Smart Fit’s largest acquisitions in July 2024, purchasing Velocity, a Brazilian indoor cycling chain, for R$183 million. The transaction added 82 studio locations to Smart Fit’s portfolio and marked a significant push into the boutique fitness segment that complements the company’s traditional large-format gyms.
The Smart Fit CEO described the Velocity purchase as part of a broader strategy to build a network of specialized micro-gyms alongside core full-service facilities. The acquisition immediately made Smart Fit a major player in Brazil’s indoor cycling market and provided infrastructure to accelerate boutique studio expansion.
Boutique Fitness Market Opportunity
Velocity’s 82 studios represented one of Brazil’s largest specialized fitness chains when Edgard Corona acquired the company. The indoor cycling segment had demonstrated resilience during economic downturns, with consumers willing to pay premium prices for boutique experiences even as membership in traditional gyms fluctuated.
The dono da Smart Fit projects opening approximately 500 boutique studios across Brazil during the next several years. Velocity provides a foundation for this expansion through existing locations, trained instructors, and operational systems that can be replicated in new markets.
Smart Fit operates multiple boutique brands including Race Bootcamp, Jab House, and Vidya Yoga in addition to the newly acquired Velocity cycling studios. This multi-brand approach allows Edgard Corona to address different customer preferences and capture spending from consumers seeking specialized fitness experiences.
Financial Structure and Integration
Smart Fit paid R$183 million for Velocity through a combination of upfront payment and earnout provisions tied to future performance. The acquisition structure incentivizes Velocity’s management team to maintain operational excellence during the integration period while aligning interests with Smart Fit’s long-term goals.
Velocity locations will continue operating under their original brand rather than being converted to Smart Fit facilities. This approach preserves Velocity’s customer relationships and brand equity while allowing Edgard Corona to leverage back-office efficiencies across multiple boutique concepts.
The company plans to accelerate Velocity’s expansion beyond its existing footprint, particularly in secondary cities where Smart Fit identified demand for boutique fitness options. The dono da Smart Fit noted that many markets can support both large Smart Fit gyms and specialized studios, creating opportunities to capture multiple revenue streams from fitness-conscious consumers.
Competitive Positioning
The Velocity acquisition strengthens Smart Fit’s competitive position against other fitness operators attempting to build boutique studio networks. Several Brazilian fitness companies have launched specialized concepts, but Smart Fit’s acquisition of an established chain accelerates its timeline for achieving scale in the boutique segment.
Indoor cycling studios typically generate higher revenue per square foot than traditional gyms due to premium pricing and efficient space utilization. This business model complements Smart Fit’s high-volume, affordable membership approach by targeting customers willing to pay more for specialized experiences.
Edgard Corona’s entrance into boutique fitness through the Velocity acquisition demonstrates the founder’s willingness to pursue growth through both organic expansion and acquisitions. The transaction positions Smart Fit to capture demand across multiple price points and fitness formats as Brazilian consumers increasingly prioritize health and wellness spending.