Budget chain Xercise4Less has secured growth investment worth £42m from Swedish credit provider Proventus Capital Partners.

The funding will allow Xercise4Less to press forward with its aggressive expansion plans, which will see the operator open another 10 gyms by the end of 2018.

In total, the Leeds-based firm plans to open 40 gyms over the next two years, after setting itself a target of having 100 gyms by the end of 2020.

Launched in 2009, the company will open its 50th club in June this year and currently has more than 300,000 members – 30 per cent of whom have never previously been members of health clubs.

Jon Wright, founder of Xercise4Less, said the growth capital will allow the firm to tap into the growing demand for fitness.

"Unlike other budget operators we are not selling on price," Wright said.

"We thrive on changing lives, and feel this ability to offer more than the consumer imagined they could receive is what will help us to continue disrupting the budget model and maintain the clear water between traditional and low-cost clubs.”

Proventus Capital Partners specialises in medium-sized companies and it has invested in a wide range of industries, including the leisure sector, where it had a significant stake in travel giant Thomas Cook during its financial and strategic transformation.

CEO of Proventus Capital Partners, Daniel Sachs, said: “The core of our strategy is working with entrepreneurs and helping them grow their business by providing them access to bespoke capital that suits their unique situation.

"The fitness industry has long been a focus area for us and we are delighted to become a strategic financial partner to Xercise4Less in their continued development.”