Toca Football is gearing up for the big leagues.
The Costa Mesa-based owner of indoor soccer training centers recently brought in $40 million, its largest round of funding to date.
The funding is expected to fuel Toca’s ambitions to be the soccer communities’ version of Topgolf Entertainment Group, a fast-growing company based in Dallas that combines sports with technology, along with food and drink options, to make golf entertaining for more people.
“There is massive pent-up demand right now for social and interactive experiences, and I think the market is well aware of that,” Chief Executive Yoshi Maruyama told the Business Journal.
“With the investor appetite in location-based experiences and the growing interest in the sport of soccer, we are right in the sweet spot.”
The Series E investment, which boosts the company’s overall funding to $105 million, came from an affiliate of Laguna Beach’s RNS Capital Partners, WestRiver Group, and D2 Futbol Investors, among others.
Seattle-based WestRiver Group was the lead investor in Topgolf, whose collection of 60-plus facilities served over 20 million guests and generated $1.1 billion in revenue in 2019. The company was acquired by Callaway Golf for $2.7 billion in March.
“It is exciting to see how Toca is transforming the intersection of sports and entertainment and bringing innovative experiences to new communities,” Erik Anderson, co-chairman of Toca, and chief executive of WestRiver Group, said in a statement.
300 Center Goal
Toca indicated a major area of focus for the company will be expanding its doors in the U.S. and around the world. It ultimately plans to open 300 training centers and 100 entertainment venues, Maruyama said.
It currently counts 14 training centers.
The company, which declined to disclose revenue or membership, said it expects to quadruple sales in 2021.
Toca board members include co-founder and two-time U.S. World Cup team member Eddie Lewis; Celeste Burgoyne, executive vice president at Lululemon; and two-time Olympic Gold Medalist Abby Wambach, among others.
The combination of technology, trainers and guest service positions the company for rapid growth, according to Maruyama.
Toca Football scaled its number of centers and employees from six to 14 and about 50 to 400, respectively, in the last two years. While some of its centers were forced to close during the pandemic-related shutdowns last year, the company was able to maintain employment, and all of its centers have since reopened.
Players returned quickly because of pent-up demand, in addition to an unparalleled level of service that has created “a very loyal customer base,” Maruyama said.
Now, the company plans to grow even faster with the goal to open 12 large centers—for a total of 26—in the next 12 months.
“We are aggressively focused on acquiring new centers in the range of 50,000 to 100,000 square feet,” Maruyama said.
In February, the company opened one of its largest facilities yet, a 95,000-square-foot center near Chicago. The center offers 18 training studios equipped with “touch trainers” and “smart targets” that assist players in honing their skills and tracking progress over time.
The center also features two soccer fields and three smaller futsal fields for hosting leagues and sports events year-round—yet another element of the company’s strategy to “create safe and guest-focused community spaces for soccer players regardless of skill level,” Maruyama said.
Diverse Offerings
The company generates revenue via a range of sports programs that vary by age and skill level.
For a sampling, members with a $29 monthly membership pay $59 per hour-long training session at Toca, while non-members pay $90 per session for the company’s longest-running training program.
The program, called Toca Training, uses “touch trainer” ball machines to help players perfect their first touch with a ball. Goal boxes or “smart targets” track and log data for participants and parents to view on an app.
In 12 sessions at Toca, players get more touches than they would playing in 96 games with their club, the company says.
The system was developed by company founder Eddie Lewis, a 15-year professional player in England and the U.S., who honed his own soccer skills by using a tennis ball machine to practice his first touch. Lewis played overseas for 10 years, with stints including English clubs such as Leeds United, Preston North End and Fulham, and in the U.S. played for the L.A. Galaxy, among other
teams.
Toca continues to innovate its programs to fulfill one of its core values of “diversity, equity and inclusion” for all lovers of the sport of soccer, Maruyama said.
One of the company’s upcoming programs comes from the acquisition of New York-based Kids in Sports, announced on undisclosed terms last October. The educational multi-sport program suits children 12 months to 12 years of age.
Its R&D teams are also working on “developing scalable technologies to tailor a soccer experience directly to each individual whenever and wherever [one] chooses,” Maru-yama said.
Global Debut
It’s the right time to grow globally, according to Maruyama.
Toca is kicking off its international debut through its social business this summer. The company is on track to open the doors to Toca Social at The O2 in London at the end of July.
The 30,000-square-foot venue will feature a variety of interactive soccer-based games as well as food and drink options. It will include a DJ booth, three bars and a Willy Wonka-themed dessert room.
“We’ve taken the running and the rigor out of the sport,” Maruyama said of concept.
“It’s a highly socialized environment around soccer and game play. You don’t have to run or sweat. You’re there to have a good time. Nonetheless, you’re in the company of others who share a love of the sport,” he said.
While the company hasn’t yet disclosed plans for a Toca Social in the U.S., it is currently piloting the concept in Texas, which is expected to be one of several favorable markets, he added.
Maruyama said there are plenty of opportunities supporting “exponential” growth as the company continues to “convert the 4 to 5 billion soccer fans around the world who love the sport, but don’t participate.”
“We believe [soccer] is the world’s most beautiful game, so we’re creating environments and communities for fans to engage and participate in the sport.”
Fitness Hub
Toca is part of a growing local industry cluster. A number of major gym operators and tech-focused fitness firms call Orange County home (see the July 5 print edition of the Business Journal for more).
Irvine-based Xponential Fitness Inc., a holder of nine boutique fitness brands spanning yoga to boxing, has plans to go public for a reported $1.3 billion valuation.
FightCamp, another up-and-coming Costa Mesa fitness experience company, equips fighters with all the gear—a punching bag, gloves and punch counters—and the technical training needed to dive into boxing at home.
The 7-year-old firm recently said it raised $90 million in a round of financing.
Irvine-based Fitness International LLC —the privately-held parent to the LA Fitness, Esporta Fitness and City Sports Club brands—is the county’s largest gym operator and has more than 730 locations.
