SQUATWOLF, a Dubai-based premium gym wear venture, struck a $30 million funding deal with Middle East’s leading private equity (PE) ASCA Capital.
The deal is billed as one of the mega PE deals in recent times in the Middle East, and comes amid talks of a ‘funding winter’ for startups globally.
The exact percentage of equity to be acquired by ASCA could not be ascertained immediately, but sources said it will be only a minority stake.
ASCA is to infuse the capital over a period of time, with a significant proportion to be made in the first 12 months.
SQUATWOLF is to use the fresh capital to finance its ambitious global expansion plans through enlarging its omnichannel presence.
Part of the funding will be deployed to further develop the startup’s product line and enhance its customer engagement and brand presence.
The gym wear venture’s product design and innovation activities are carried out from the UK.
“With ASCA Capita’’s investment, SQUATWOLF will be able to build on its success to date and establish itself as the choice of athletes across the globe,” Wajdan Gul, co-founder and CEO of the venture, told Arabian Business.
He said the venture is excited to have the PE on board as it continues to build its brand, products and reach.
“Their perspective, expertise and experience in working with both high-growth and more established companies make them the right partner for us on the next leg of our journey,” Gul said.
Anam Khalid, co-founder and COO of SQUATWOLF, said together with ASCA Capital, the company is confident of achieving its objective of “leading the pack” through desirable, performance-focused gym wear.
SQUATWOLF, which was founded in Dubai in 2016, has quickly established itself as a premium gym wear brand and now has a global reach through ecommerce and presence in third-party retail platforms.
The brand, currently sold in more than 120 countries, offers a considered collection of high-quality gym wear for both men and women, and its innovative designs have won acclaim for their combination of insight-driven function, style, and comfort.
The ASCA partners said they were quite optimistic about the growth potential of the startup and their investment is aimed at accelerating its growth plans.
SQUATWOLF has already achieved impressive success, and we believe that our investment will help the company to unlock even greater potential,” said Tom Hodgson, Partner at ASCA Capital.
Company sources said early investors in the startup including Disrupt.com will remain as shareholders post the ASCA deal as well.
SQUATWOLF’s successful fundraising deal comes even as the MENA region saw a significant decline in funding deals in the January-March 2023 quarter.
According to Magnitt Research, the region saw $818 million in funding across 94 deals in the first quarter of this year, which is only half of the number of transactions seen in the same period of 2022.
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