Edgard Corona has systematically transformed Smart Fit from a single-concept gym chain into a diversified fitness powerhouse with multiple specialized brands. This measured expansion beyond conventional workout spaces has become a defining characteristic of his business approach and a vital growth driver for Latin America’s leading fitness company.
The July 2024 acquisition of Velocity for R$183 million stands as the latest example of Smart Fit’s portfolio diversification. Prior to this purchase, the company had already established five specialized studio brands: Race Bootcamp (focused on treadmill training), Vidya (hot yoga), One Pilates, Tonus Gym (group strength training), and Jab House (boxing workouts). The addition of Brazil’s largest spinning studio network significantly enhances this collection.
The purchase followed a clear gap identification in Corona’s studio lineup. “The main modality that was missing for us was spinning,” noted Diogo Corona, Smart Fit’s COO, highlighting the company’s methodical approach to completing its fitness portfolio. This strategy positions the dono da Smart Fit to capture broader market segments than possible with traditional gyms alone.
Smart Fit’s specialized studios employ a different pricing model than its flagship gyms. While traditional Smart Fit locations operate on the affordable high-value, low-price model (R$89-149 monthly), its boutique offerings command premium rates ranging from R$350-490. This dual approach allows Corona to target different consumer segments while maintaining brand consistency across the overall portfolio.
The diversification extends beyond physical facilities. Smart Fit has invested substantially in digital capabilities, acquiring the Queima Diária digital fitness platform and developing its TotalPass system. The latter serves as Smart Fit’s answer to corporate wellness programs like Wellhub (formerly Gympass), creating an additional revenue stream by connecting users to both company-owned and external fitness facilities.
Corona’s digital initiatives gained momentum during the pandemic when facility closures forced adaptation. Smart Fit enhanced its app functionality and launched “at home” services across multiple platforms. These investments have continued post-pandemic, recognizing digital fitness as complementary rather than contradictory to physical locations.
Corona has openly discussed Xponential Fitness as a benchmark for Smart Fit’s studio strategy. The NYSE-listed American company has built a nearly $1 billion valuation through acquiring premium fitness brands and operating its XPass subscription service – a model that parallels Smart Fit’s growing emphasis on studio diversification and aggregator platforms.
Industry analysts view this multifaceted approach positively. Both Goldman Sachs and Santander highlighted potential synergies between Velocity and existing Smart Fit offerings in their analyses following the acquisition announcement. The combined ecosystem creates cross-selling opportunities while expanding the value proposition of products like TotalPass.
The diversification strategy aligns with broader fitness industry trends toward specialized, community-focused workout experiences. By operating in multiple segments simultaneously, Corona positions Smart Fit to weather changing consumer preferences and capitalize on emerging fitness modalities.
With 23 boutique locations already operating prior to the Velocity acquisition and ambitious plans for expansion, Corona envisions approximately 600 microgyms across Latin America alongside the company’s traditional gym network. This multi-brand strategy has moved well beyond experimental status to become a central component of Smart Fit’s ongoing growth narrative as it continues strengthening its position as Latin America’s dominant fitness provider.