Harbiz: The Digital Revolution in Fitness and Wellness

The “Coffee with Entrepreneurs” initiative brings you closer to leaders of the Spanish entrepreneurial ecosystem to learn first-hand about their experiences and trajectories.

Our latest Café was with Mario Morante and Javier Ortega, founders of Harbiz, a SaaS platform aimed at fitness and wellness professionals, to help them digitize their businesses by increasing customer acquisition and loyalty and making them scalable.

In their chat with José Carlos Huerta, our Director of the Startups Program, Mario and Javier review their professional careers, share with us how they launched Harbiz, how they got funding, what their platform provides and what their plans are for the future.

Here you can see the Coffee with Mario Morante and Javier Ortega:

Coffee with Mario Morante and Javier Ortega, founders of Harbiz

Below, we summarize the coffee with Mario Morante and Javier Ortega:

Career and motivation of the founders of Harbiz

Mario and Javi, two industrial engineers who met at university in Madrid, share a professional career marked by a solid background and experience in consulting before embarking on entrepreneurship. After completing their studies in engineering, they both decided to specialize further; Mario opted for a master’s degree in business and consulting, while Javi leaned towards industrial economics and markets. Their professional path led them to work in consulting at the same company, Indra, where an intrapreneurship proposal during a Christmas dinner inspired them to seriously consider creating their own company.

The initial idea for Harbiz, a marketplace to connect personal trainers with clients, was the starting point. However, since that original idea, Harbiz has pivoted, changing its business model until it reaches the shape it has today. This transformation underscores the founders’ ability to adapt and evolve, and their interest in exploring new opportunities and challenges in the world of entrepreneurship.

What is Harbiz and what does it contribute?

Harbiz started as a marketplace to connect personal trainers with clients, but after facing the complexity and high level of funding required for this platform, the founders decided to pivot towards a more sustainable and scalable business model. Thus, Harbiz transformed into a software-as-a-service (SaaS) solution that enables fitness professionals to manage and scale their businesses effectively.

This platform offers a range of built-in tools that replace six to ten apps that coaches used to use sparsely, such as Excel, WhatsApp, bank transfers, and WordPress. Harbiz unifies all these needs into a single solution that facilitates the daily management of personal trainers, allowing them to provide a more efficient and higher quality service. Trainers’ clients can book classes, view exercise routines and meal plans, and communicate via chat within a custom app that reflects the trainer’s branding with their colors and logos.

In addition to improving operational efficiency, Harbiz also acts as a technology partner by providing data analytics that help coaches better understand their customers’ behavior and make informed decisions for retention and cross-selling. The platform also educates professionals on how to optimize their business, something that is rarely taught in their technical training. With functionalities that include gamification and community building, Harbiz enhances client-trainer interaction and fosters a sense of belonging and motivation among users.

Pivot taking advantage of what you have learned

Harbiz’s strategic shift from a marketplace to a complete software-as-a-service (SaaS) solution for personal trainers was a critical moment in the company’s journey. Mario and Javi faced the difficult decision to abandon the marketplace model after having dedicated more than two years to its development. This pivot came after he left his jobs in April 2019, in the fall of that year, relaunching the new platform in February.

The ability to detach from what has been built and learn from experience was key in this process. Despite having invested time and effort in learning how to program and develop the marketplace, they realized that the important thing was not to cling to an idea that did not scale or meet the needs of the market. Direct and continuous contact with customers provided them with the perspective needed to understand what they really needed and weren’t getting from the previous model.

Dealing with the lack of financial resources was also a major challenge. Without the capital needed to hire a CTO or external developers, they opted for a very entrepreneurial approach: learning to code themselves. This approach allowed them to have full control over product development. They spent many sleepless nights, taking advantage of free resources and online tutorials, to acquire the necessary technical skills. This self-paced learning formed the knowledge base they would need to rapidly develop the new SaaS MVP in just four months. This process underscores their resilience and adaptability, and their commitment to creating a solution that will truly resonate with their clients’ needs and transform the way coaches manage and scale their businesses.

The leap to entrepreneurship: risk and opportunity

Deciding to leave the security of a corporate job to venture into entrepreneurship is a choice fraught with risks and challenges, as Harbiz’s founders recount. The process of leaving behind the comfort of a fixed payroll and immersing yourself in the uncertainty of starting your own business is a major barrier for many people. However, for Mario and Javi, the decision was driven by a combination of favorable personal circumstances and a strong commitment to their vision. The first step in their entrepreneurial journey was to develop a minimum viable product (MVP) and demonstrate their traction in the market. This strategy allowed them to validate the idea without needing a large initial investment, demystifying the common belief that it takes a lot of money to start a business. From this initial point, they set about building and improving their product.

The decision to devote themselves entirely to Harbiz coincided with a phase in life in which both co-founders were willing to take high risks. It was not a question of having substantial savings, but of firmly believing in his project. This determination was crucial, especially when they decided to pivot from a marketplace to a SaaS solution. This transition allowed them to actively listen to their customers and quickly adapt to their needs.

The opportunity to pivot presented itself at a critical time, just before the COVID-19 pandemic. When the world came to a standstill in March 2020, personal trainers were in dire need of digital tools to manage their businesses remotely, which turned out to be a direct demand for Harbiz’s new SaaS product. The pandemic, while initially looking like an impending disaster, became a catalyst for the company’s accelerated growth.

The experience of Harbiz’s founders demonstrates that entrepreneurship requires more than financial resources; it requires passion, adaptability, and the ability to seize opportunities in times of uncertainty. This story is a testament to how calculated risk, combined with a strategic approach and a little luck, can lead to extraordinary success.

Harbiz Impact and Reach: Key Data and Metrics

Harbiz, by transforming itself into a comprehensive tool for fitness professionals, has experienced remarkable growth in its reach and diversity, reflected in both its team and its user base. Currently, the company has 49 employees of more than eight different nationalities, which underlines its international focus and its ability to adapt to multicultural markets. The teams are strategically structured based on target markets, operating in languages such as Spanish, English and German, with plans to expand into other European languages in the near future.

In terms of users, Harbiz has managed to attract more than 150,000 end-users. These users are mainly customers who benefit from the personal training, nutrition, physiotherapy, yoga, and pilates services provided by the professionals who use the platform. To date, approximately 7,000 professionals are actively involved in using Harbiz to manage and scale their businesses, paying a monthly fee for a license to use the platform.

Raising capital: the case of Harbiz

Raising capital is one of the most challenging tasks for any startup, especially in a complex economic environment. Harbiz, however, has managed to close a €5 million round of funding, an important achievement in the Spanish entrepreneurial scene.

The process was demanding and lasted for an entire year, from January to December, during which time the Harbiz team contacted more than 130 investment funds throughout Europe. The strategy was clear: look for a Lead Investor who was not Spanish to launch the company into the next phase of its development. This strategic decision marked Harbiz’s ambition to establish a strong presence in the European market.

The search was complicated and full of negative responses , until in August, Octopus Ventures, one of the largest and most respected funds in the United Kingdom, gave its preliminary approval. This initial yes was just the beginning of an even more rigorous process that included months of due diligence, detailed analysis, and verifications that created considerable tension within the team.

Finally, in December, Harbiz signed the agreement and received the investment, culminating a year of intense efforts and negotiations. This success reflects Harbiz’s strength and potential, validating their mission and vision internationally, marking a significant milestone in their trajectory and preparing them to face new challenges and opportunities in the future.

Rejections in the search for funding: strategies and tips

Seeking funding for an entrepreneurial project can be a daunting and strenuous process, especially when you’re faced with a constant series of rejections. Mario and Javi have experienced this challenge repeatedly throughout their funding rounds. According to them, it is common to receive numerous “noes” before finally obtaining a “yes” that can materialize the desired investment.

The process involves numerous meetings, detailed preparation of documentation and clarification of numerous points, which can result in a great deal of wear and tear when, after hours of dedication, the response from investors is negative. In addition, entrepreneurs often face situations where investors, after requesting a lot of information and maintaining active communication, perform what is known as ghosting, disappearing for extended periods only to finally reject the project. Mario stresses that this is the “game” of capital raising: it is essential to assume and accept that rejections are part of the process and that they can happen frequently. The lack of transparency and the delay in responses are particularly frustrating aspects that they feel could be improved within the ecosystem.

Mario’s advice to those who are currently seeking funding is to accept from the outset that rejections are an inevitable part of the process. Persistence and resilience are key. Accepting and assimilating this reality can make the process less painful and more emotionally manageable, allowing entrepreneurs to maintain their energy and focus on eventually reaching the “yes” they are after.

Evolution in investment processes: Harbiz’s experiences

In its search for financial support through investment rounds, Harbiz has gone through several key stages that have marked its growth and learning within the entrepreneurial ecosystem. Transparency in the investment process is essential, a principle that both the Bankinter Innovation Foundation and Bankinter Capital Riesgo strive to maintain, establishing clear deadlines and constant communication with entrepreneurs, which is crucial given that startups operate with limited resources and any delay can significantly impact their viability.

Throughout their experiences with four or five rounds of financing, Mario and Javi have noticed significant changes in the investment environment, especially with the recent global economic slowdown that has made it difficult to raise capital. Despite these challenges, they have learned the importance of negotiation and presenting their company to investors. The mindset of founders has evolved from initial nervousness when interacting with investors to adopting a more confident and professional attitude. Initially, Harbiz focused on conveying a dream and drawing attention to the potential of the market. However, over time and as the company has matured, the communication and structure of the information they present to investors has become more critical. Now, with a two-year history of performance and stronger metrics, the conversation with investors is more analytical, focusing on the predictability and sustainability of the business rather than the long-term potential alone.

This learning and professionalization in data presentation and information management have generated greater confidence in investors.

Harbiz Customer Profile: Diversity in the Fitness Wellness Industry

Harbiz has managed to position itself as a versatile platform in the fitness and wellness sector, attracting a wide range of professionals looking to optimize the relationship with their clients and expand their businesses efficiently. The ideal Harbiz customer is not limited to a single profile; It ranges from personal trainers, nutritionists and physiotherapists to yoga, pilates and Crossfit instructors. This diversity reflects the versatility of the platform, which caters to both those who are just starting out and operate entirely online, and those with an established presence offering face-to-face sessions.

Harbiz stands out for making it easier to run individual businesses or small studios rather than large gym chains. Its main focus is on strengthening professional-customer interaction, providing tools that help professionals understand and predict their customers’ behavior, such as identifying when a customer might be about to unsubscribe if they have stopped interacting with the app.

In addition, Harbiz’s adaptability to market changes has been particularly demonstrated during and after the COVID-19 pandemic, a period that accelerated the digitalization of many services. The platform was able to quickly pivot to digital when needed and subsequently integrate modules for booking face-to-face sessions, reflecting the trend towards a hybrid business model. This hybrid approach allows professionals to maintain continuous supervision, regardless of whether the client is training on-site or independently at home, ensuring a personalized and effective training experience.

Key to Harbiz’s success: providing value to professionals and their clients

One of Harbiz’s most appreciated functionalities, according to users, is the platform’s ability to automate and scale their businesses. Fitness professionals, such as nutritionists, trainers, and physiotherapists, find Harbiz an essential tool that allows them to optimize their services significantly. For example, a nutritionist can quickly create custom diets and send them directly to the client’s app for easy access and tracking. A personal trainer, on the other hand, can design exercise routines that their clients can perform from home, in addition to monitoring their progress remotely. For physical therapists, the functionality of managing appointments is particularly valuable, making it easier to organize and communicate with patients.

However, what really sets Harbiz apart and makes it such a valued solution is how end customers respond to these tools. When end customers express their satisfaction and enthusiasm with the platform, it increases its value, as it improves the customer experience. This dual benefit, where Harbiz enriches both the professional operation and the customer experience, is critical to the platform’s continued success and popularity among fitness professionals.

Harbiz’s Organic Growth and International Expansion

Harbiz has achieved significant international expansion, now operating in more than 40 countries, a growth largely driven organically. The service’s digital accessibility allows fitness professionals from diverse geographies to discover Harbiz through Google searches, peer-to-peer recommendations, or even ads on social media such as Instagram. This expansion is not limited to local business efforts; The brand has gained a global presence thanks to the universal nature of its services, which only require an internet connection to operate.

Harbiz’s strategy focuses on languages rather than specific geographies. This has allowed a trainer in Spain to recommend Harbiz to a colleague in Latin America or a user in the United Kingdom to recommend Harbiz to another in the United States. This approach has created a flywheel effect, a dynamic of recommendations and content that transcends borders and facilitates rapid adaptation in new markets.

This internationalization capacity has been especially valued by investors, seeing in Harbiz a scalable business model with a potentially global reach. Organic growth complemented by targeted advertising strategies and the power of social media has allowed Harbiz to consolidate in its local market and gain relevance in multiple international markets.

Harbiz’s Vision for the Future: Road to the Unicorn

Harbiz’s ambition is clear and enormous. The founders of the platform envision Harbiz as a global reference in the fitness and wellness sector. Its goal is to achieve unicorn status, a company worth more than a billion dollars. To achieve this, they know they must execute their strategy flawlessly across multiple international markets. This vision requires an ambition that extends beyond day-to-day operations, influencing how they present the company to potential investors and how they align their goals with the expectations of the investment funds that support them. The Harbiz team is committed to conveying this vision both within the company and externally, ensuring that all stakeholders understand and share this ambitious path to growth and global expansion.

Tips for entrepreneurs: perseverance and speed

Mario and Javier share valuable lessons learned from their entrepreneurial journey, offering advice that can be crucial for those who are starting their own business.

Mario emphasizes the importance of perseverance in entrepreneurship. Accept that the road to success is full of unexpected mistakes and challenges, and that it’s crucial to learn from every mistake. According to him, it is essential to have the resilience to continue, even when things are not going as planned. Perseverance is what allows entrepreneurs to overcome obstacles and continue to move towards their goals, adjusting and improving with each step taken.

On the other hand, Javier advises that keeping everything under control can be a sign that you’re not moving fast enough. In the startup world, where speed is crucial, it’s critical to launch products and test ideas quickly, even if they’re not perfect. This philosophy of “better fast than perfect” allows companies to adapt and evolve based on real user feedback . Javier stresses the importance of embracing uncertainty and using it as a catalyst for growth and innovation.

Both pieces of advice reflect a realistic but optimistic view of entrepreneurship, underlining that both the ability to persevere in the face of difficulties and the ability to act quickly are critical to success in a dynamic and often unpredictable business environment.

Finally, we summarize the questions and answers to the founders of Harbiz:

Free MVP and perception of value:

Was the first MVP free?

No, initially we charged customers we already knew from the marketplace, although during the COVID-19 quarantine we offered the platform for free, which helped attract 200 professionals. This strategy increased the perceived value, since, after the quarantine, none left the platform.

Attractive for investors:

What key factors do investors see in Harbiz that they don’t see in others?

Investors initially valued our ability to build the software and launch marketing campaigns without prior knowledge. This adaptability and rapid learning built trust and demonstrated our commitment and understanding of the business.

Business model expansion:

Have you considered opening the app for end customers to purchase hours of different activities directly?

While we recognize the potential of a more B2C model, we are currently concentrating on strengthening our B2B2C approach without directly competing for our clients’ audience, avoiding conflicts of interest and maintaining a clear focus.

Distribution of the equipment in Harbiz:

How is the equipment distributed in Harbiz?

Approximately 30% of the team is dedicated to sales, 20% to marketing, and 50% to product and technology.

Implementation of artificial intelligence:

Do you have any plans to implement AI in Harbiz?

Yes, we see AI as a tool to improve processes and not to replace human work, especially in sensitive areas such as health. We plan to integrate AI into chatbots, content generation, and data analytics.

Initial MVP metrics and market validation:

What metrics did you consider key in your first MVP?

Rather than concentrating on mass acquisition, we focus on validating the product’s fit with the needs of users. Our priority was to make sure we were offering something useful and relevant, preparing to grow on a solid foundation.

The next Coffee with Entrepreneurs will take place on May 28 with Gonzalo Román, the founder and CEO of Zinkee, a company that helps SMEs in their digitalization process. Sign up now!

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