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In the world of at-home fitness apps, Zwift is carving its own path — and it has plenty of capital to do so.
The company isn’t turning a profit yet, co-founder Eric Min told Bloomberg, but it has raised $620 million in funding from investors including Amazon’s Alex Fund, KKR and Co., and Permira Holdings. Its last funding round was in 2020.
With a market value of more than $1 billion, Zwift is looking to continue to invest in a business model that focuses more on the virtual exercise experience than equipment — and that targets more competitive users.
- Unlike Peloton, Zwift doesn’t sell its own bikes, treadmills, or rowing machines.
- Instead, its main offering is a subscription-based app that charges $15 a month.
- Its physical equipment offerings are limited to trackers and sensors to add to existing fitness equipment, as well as the Zwift Hub, a bike attachment to control speed and resistance.
With these investments, Min told Bloomberg he hopes to increase the subscription prices, get to 10 million subscriptions, and take the company public. He also aspires to invest in other areas of at-home fitness like “indoor running.”
Tough Times
Zwift’s plans for growth come amid a sharp drop in consumer interest for at-home fitness.
During the pandemic, the industry skyrocketed as gyms closed, but gym-goers are now flocking back to out-of-home fitness options.
