ASTANA—Hero’s Journey, a Kazakhstan-based gamified fitness studio, secured $6 million in funding at a $30 million valuation. In an interview with Digital Business on Jan 13, the founder, Ilyas Isatayev, discussed his journey from securing investment to breaking into the American market and preparing for future growth.
Ilyas Isatayev, the founder of Hero’s Journey, a Kazakhstan-based gamified fitness studio. Photo credit: Digital Business
Founded in 2023 and operating in Almaty and Astana, the company blends fitness and gamification to help users develop consistent exercise habits.
“Our approach is client-focused and iterative, emphasizing goals and user experience. This has led to our customers engaging with fitness 2.5 times more often than the industry average,” said Isatayev.
Rapid growth and local success
Since launching, Hero’s Journey has experienced remarkable growth. In 2023, its annual revenue tripled from $1 million to $3 million, and it plans to reach $6 million in 2025. The startup has grown its team to 70 employees, including 23 programmers, and is preparing to open four new studios across Kazakhstan, with two franchise locations in Almaty and Astana.
Iliyas Isatayev, together with the coach and clients of Hero’s Journey. Photo credit: Digital Business
The $6 million funding marks a significant milestone for Kazakhstan’s startup ecosystem, being the first time a local startup has closed such a funding round with domestic investors.
“I spent two years entirely focused on fundraising. The groundwork we laid made this second round easier because investors already understood Hero’s Journey as a business,” said Isatayev.
Additionally, his prior experience with Invictus Fitness Clubs helped attract interest not only from venture funds and angel investors but also from traditional entrepreneurs exploring the venture market.
Isatayev noted that despite securing $7 million in commitments, the company limited the raise to $6 million to avoid excessive equity dilution as further rounds are planned. However, expanding to the U.S. may require an additional $1 million to meet the landlord’s deposit requirements.
Breaking barriers in the U.S.
According to Isatayev, entering the competitive U.S. market presents unique challenges, including misconceptions about Kazakhstan that often complicate negotiations.
“In the U.S., the word ‘Kazakhstan’ can deter some partners due to limited awareness of our country. Their understanding is shaped by stereotypes from movies like Borat. This distrust forces us to provide additional guarantees, such as substantial deposits,” he said.
Despite these hurdles, preparations for a New York studio are underway. Hero’s Journey has registered entities in Delaware and New York, hired advisors with U.S. fitness industry expertise and secured trademarks.
“Now we need to finalize the lease agreement before moving forward with design and renovations. Initially, we planned to open the facility in the third quarter of 2025 but due to unforeseen challenges, we expect the opening to occur no earlier than the fourth quarter,” said Isatayev.
Ambitions for Unicorn status
Hero’s Journey projects $3 million in revenue from its U.S. operations in the first year and aims to increase that to $6 million annually within two years.
“Yes, it is not a significant amount for the U.S., but it is enough to avoid losses. With these metrics, we expect to generate a profit of approximately $300,000 to $400,000,” said Isatayev.
The company plans to raise $20 million in its next funding round to open seven to eight additional studios in New York, eventually expanding through franchising.
“This round will likely be our last before an IPO. At some point, investors will need an exit, early employees will want to sell their shares, and the founders will also need to capitalize on the product,” said Isatayev.
Hero’s Journey focuses on mature markets like New York, targeting seasoned gym-goers struggling with exercise consistency. New York’s private fitness market, valued at $4 billion, is 20 times larger than Kazakhstan’s $200 million market.
“Our long-term vision includes becoming a unicorn valued at $5 to $10 billion, especially if we manage to enter the global market,” added Isatayev.
