Daily Yoga, Founded by Three Academic Elite Entrepreneurs, Files IPO Prospectus

“For women, the most desirable fitness activity in the future will be quiet forms of exercise such as yoga,” said Li Zupeng, CEO of Daily Yoga, during an interview with VCBeat in his spacious office at Sigma Tower in Xi’an High-Tech Zone.

Yoga, a practice originating in ancient India that aims to enhance consciousness and help humans fully realize their potential, is experiencing a renaissance alongside the global surge in fitness trends. The New York Times once predicted that the United States would have 30 million yoga practitioners, accounting for approximately 10% of the total U.S. population, with the industry’s value reaching $30 billion. Since entering China in the 1980s, yoga has rapidly attracted tens of millions of enthusiasts and practitioners. Data indicates that by 2013, mainland China already had 50,000 registered yoga studios and 200,000 certified instructors, with these figures continuing to grow at an annual rate of 15–25%.

Top-Tier Scholars: The Entrepreneurial Dream of Three Men

Academic Star Li Zupeng Is a Dedicated Yoga PractitionerLi Zupeng, who holds a Ph.D. in Computer Science and Technology from Zhengzhou University of Information Engineering and completed his postdoctoral research at the Institute of Computing Technology, Chinese Academy of Sciences, has participated in or led two National 863 Program projects and one project funded by the National Natural Science Foundation of China. He also holds four invention patents granted by the State Intellectual Property Office. Behind this impressive academic record, Li Zupeng is also a dedicated yoga practitioner. During his postdoctoral studies at the Chinese Academy of Sciences, Li developed an interest in yoga and gained access to various resources, including yoga studios and equipment providers, as well as professionals specializing in yoga operations and promotion. This experience sharpened his insight into the significant potential of the yoga market, serving as the catalyst for the eventual founding of Daily Yoga.

Of course, as with all startup stories, no one achieves success casually—not even top academic performers.

However, they will avoid unnecessary detours.

In 2005, while pursuing his postdoctoral research at the Chinese Academy of Sciences, Li Zupeng used a Nokia 7210, a mobile phone that was immensely popular at the time. Two years later, showcasing his academic prowess, Li ventured into software development by independently creating MemoryUp Pro, a Java-based system utility application for the Symbian and BlackBerry platforms. Launched in June 2007, the app topped the North American BlackBerry paid apps chart by September. At that time, BlackBerry held half of the smartphone market share. It was also in that same year that the first-generation iPhone was introduced.

Li Zupeng’s younger brother, Li Lepeng, graduated from the Department of Polymer Science and Engineering at the School of Chemical Engineering, Xi’an Jiaotong University. He later earned a master’s degree in Systems Engineering from the Department of Systems Engineering, School of Management Engineering, also at Xi’an Jiaotong University. He then pursued further studies in the United States at Rensselaer Polytechnic Institute, where he obtained a Ph.D. in Decision Sciences and Systems Engineering. Additionally, he is a Fellow of the Society of Actuaries (FSA), a credentialed actuary in the United States, and a member of the Institute for Operations Research and the Management Sciences (INFORMS). During his time in the U.S., Li Lepeng was responsible for the overseas operations of MemoryUp Pro, liaising with mobile carriers; the app achieved annual revenues of $500,000. This experience provided both the expertise and capital accumulation that laid the foundation for the subsequent founding of Daily Yoga. Later, Li Lepeng became the Chief Operating Officer (COO) of Daily Yoga.

Wang Jing, CTO of Daily Yoga, earned a Bachelor’s degree in Computer Science and Technology from Xidian University and holds the Project Management Professional (PMP) certification issued by the Project Management Institute (PMI). With many years of IT expertise, he has extensive experience in planning, implementing, and managing IT projects for the banking, insurance, financial, and government sectors. Wang Jing previously worked at companies such as Foxconn. In 2012, he co-founded Daily Yoga with brothers Li Zupeng. Currently, Wang Jing leads the R&D team at Daily Yoga, overseeing product planning, design, and implementation.

After the app achieved tremendous success in the North American market, financial gains took a backseat; the sense of accomplishment derived from user calls and emails inspired the three academic high-achievers to consider entrepreneurship—a decision that was far from easy. In 2008, they embarked on their entrepreneurial journey. At that time, Android and iOS were just emerging, and most applications were still in the demo stage.

Pioneering a Unique Path in the Early Stages of Entrepreneurship: Assessing the Situation to Focus on Yoga

The Daily Yoga team is full of yoga-loving young women. Of course, high achievers have their own methods.

Li Zupeng, a native of Hubei Province, chose Xi’an as the base for his entrepreneurial venture. In his view, Xi’an boasts deep cultural and historical foundations and is free from impetuousness. As it turned out, although the journey was not without its challenges, Xi’an, with its high concentration of universities, indeed helped Li Zupeng build up his initial talent pool during the early stages of his startup. Starting from the basics of Android and iOS coding, he recruited talent and assembled his team, beginning with software outsourcing—a field in which he was well-versed—to sustain his entrepreneurial project. However, Xi’an’s relatively conservative and insular environment also posed difficulties for Li Zupeng’s venture, a matter to be discussed later.

In 2012, Li Zupeng’s team finally set its sights on yoga. In an exclusive interview, Li provided VCBeat with a comprehensive review of the strategic planning behind the founding of Daily Yoga.

As the team matured, Li Zupeng’s startup naturally sought a breakthrough in the mobile internet sector, which was already gaining significant momentum at the time. The company ultimately entered the mobile health space through Daily Yoga, driven not only by the personal interest mentioned earlier but, more importantly, by considerations of market prospects.

Li Zupeng explained to VCBeat that his team spent a year conducting extensive screenings, evaluating the top 10 offerings at fitness centers while also considering the top 10 exercises practiced by home users, women, mothers, and men. They identified a key commonality: yoga was the only discipline to rank among the top five in both gym and home settings.

As economic capabilities rise, mobile health is inevitably becoming the next critical focus. The integration of health and mobile internet will be a major direction for future development. Yoga, which is not constrained by location, does not require companionship, and is well-understood by practitioners themselves, serves as the key to entering the mobile health sector. When explaining his entrepreneurial choices to VCBeat, Li Zupeng also mentioned the three questions he considered when selecting yoga as the breakthrough point: “How big is the cake? How much can we claim? And why should it be us who claim it?”

Three Questions That Are Either Very Realistic, Very Scholarly, or Not at All Scholarly.

Rarely Challenged Domestically, Profitable Through Overseas Users

Daily Yoga App Screenshot: With the direction set, all that’s left is to surge ahead.

The pursuit of beauty is an enduring theme among female users, with slimming and weight loss being part of their daily routines. Daily Yoga primarily targets urban white-collar workers, enabling office ladies to practice yoga and stay fit anytime, anywhere during their fragmented spare time. “As they age, more women come to realize that the ultimate source of beauty lies in fitness, leading them to cultivate both inner and outer well-being,” Li Zupeng told VCBeat, describing the trend in women’s fitness. Similar to beauty and skincare services, Daily Yoga offers courses at various time slots to allow users to practice at their convenience.

Daily Yoga’s positioning as a platform for “light health” and “light social interaction” also facilitates users in making friends while using the app. Female users are more likely to connect with peers who share their interest in yoga practice, which, to some extent, enhances user stickiness. According to Li Zupeng, Daily Yoga currently has over 18 million users, with domestic (Chinese) users accounting for approximately two-thirds. Among these users, a significant number have formed close friendships through the platform.

Li Zupeng believes that Daily Yoga has achieved exceptional focus. This “all eggs in one basket” strategy has helped Daily Yoga accumulate a large base of loyal users. Once iterations are implemented, his team can rapidly find breakthroughs in areas such as aerobics, fitness equipment, and cycling. This represents one of Daily Yoga’s greatest advantages in China’s niche market. In contrast, most other yoga apps in China lack rigorous systems and awareness of intellectual property rights. Therefore, Li Zupeng confidently assured VCBeat that Daily Yoga currently has no direct competitors in China’s vertical sector.

Nevertheless, Daily Yoga has a substantial overseas user base. Since domestic users in China lack the habit of paying for digital content, the majority of Daily Yoga’s current profits come from monetizing paid content abroad, achieving cash flow growth by charging premium users a fixed monthly fee for advanced courses. Therefore, Li Zupeng analyzed Daily Yoga’s potential competitors in the overseas market—Pocket Yoga and Yoga Studio—for VCBeat. He believes that Daily Yoga’s advantages in the international market stem not only from its course offerings but also from its social engagement mechanisms, while the recurring subscription model will further enhance the monetization of its overseas users.

"Charge foreigners and let them use it."

In 2015, Focused on O2O, with Attention Turned to Beijing and Shanghai

2015, Daily Yoga Aims High. Of course, the above was just a joke.

Relying on one-third of its paid courses to generate the majority of its revenue from one-third of its overseas users is clearly not the right strategic direction for Daily Yoga’s future. Although Chinese users may lack a strong habit of paying for digital services, figuring out how to monetize the domestic market remains a key challenge for Li Zupeng.

Under further questioning by VCBeat, Li Zupeng revealed Daily Yoga’s O2O strategy for 2015: integrating online users with offline instructors and studios. Plans were also underway to onboard 50 studios and 200 certified instructors in each major city, including Beijing and Shanghai. Although there were no immediate plans to charge for these services, the O2O model was undoubtedly a crucial step toward achieving profitability for Daily Yoga in China.

Furthermore, with the rise of living room culture spurred by smart TVs, the prospects for indoor fitness are highly promising. Daily Yoga has currently reached cooperation intentions with multiple smart TV providers, including LeEco and Xiaomi, striving to leverage Smart TV platforms to strengthen its presence and capture this niche market.

As its footprint expands, the relatively insular city of Xi’an is poised to constrain Daily Yoga’s growth. In response, Li Zupeng revealed that Daily Yoga, currently in negotiations for its Series A financing round, is considering establishing operational departments in Beijing and Shanghai to rapidly scale and replicate its model, thereby gaining a first-mover advantage in an increasingly competitive market.

As for the increasingly booming internet healthcare market in China, Li Zupeng also has his own views. He believes that the continuous development of mobile health and mobile medical services will create many opportunities, ultimately leading to changes in lifestyle. Whether it is Chunyu Doctor or Daily Yoga, they need to seize the opportunities in this wave. The O2O sector that Daily Yoga needed to face in 2015 will also be a huge test: it requires consensus among users, coaches, and venues, promoting rapid development of the industry chain through accumulation from zero to one. For Daily Yoga, which excels in online operations, how to cope with the more intense, arduous, and burdensome challenges offline requires the team to make full preparations in terms of capital and future planning, achieving the implementation of business models through resource integration.

Reality is harsh, but trust that top students have their own ways.

VCBeat is also waiting to see.

(To stay updated on the latest news about internet healthcare startups, please follow VCBeat’s WeChat official account: vcbeat. We also welcome you to engage with us on topics of interest, contact us via WeChat, and share your startup projects or relevant research insights.)