Zwift announced it raised $450 million in a new investment round. The training platform — which has more than 2.5 million registered users in 190 countries — is a $15-per-month app that allows users to interact, train, and compete against each other through pairing to a smart bike or treadmill.
The new round of funding, led by KKR & Co Inc., will be used in part to bring Zwift hardware to the market. Private equity firm Permira, Amazon Alexa Fund, and Zone 5 Ventures — Specialized Bicycle Components’ venture capital fund — were also investors in the round.
Like other at-home digital fitness companies, Zwift has benefitted from users looking for ways to stay active and social amid the COVID-19 pandemic. For example, it hosted the first Virtual Tour de France in July, which was broadcast in over 130 countries and drew 117,000 users.
The Growth Of Online Fitness:
- A TD Ameritrade poll recently found that 59% of Americans would not renew their gym memberships even after the pandemic is over.
- On Tuesday, Apple announced its Apple Fitness+ app, which Peloton CEO John Foley — whose company saw fourth-quarter sales jump 172% year-over-year — said legitimized fitness content.
- Peloton also reported a 210% increase in digital subscriptions in Q4.
- Lululemon purchased home fitness platform Mirror this summer for $500 million.
- Online orders for fitness equipment increased 220% in May and 122% in June compared to 2019.