Zwift, maker of a popular indoor training app, just landed a whopping $450 million in funding led by KKR – ClearTips
Zwift, a 350-person, Long Beach, California-based online fitness platform that immerses cyclists and runners in a 3D-generated world, just $ 450 million in funding led by investment firm KKR for a minority stake in its business Raised a huge amount. .
Permira And Specialized Cycle’s venture capital fund, Zone 5 Ventures, also joined with earlier backers, including Round, True, Highland Europe, Novator and Causeway Media.
Zwift Has now fully raised $ 620 million and is valued north of $ 1 billion.
Why such a big round? Right now, the company makes just one app, even if it is popular.
Since its 2015 founding, 2.5 million people have signed up to enter a world that, as Outside magazine once described, was “a social-media platform, part personal trainer, part computer Game. ” This special combination makes the Zwift’s app both entertaining and attracts riders, no matter the conditions outside.
The company declined to share its number of active customers with us – Zwift charges $ 15 per month for its service – but it appears to have a loyal base of users. For example, 117,000 of them competed in a virtual edition of the Tour de France, which was held in July when it was hosted by the official race organizer of the actual tour as its partner at the event. it was done.
Which takes us back to this giant era and what it will be used for. Today, to use the app, Zwift’s bike-riding followers need to buy their own smart trainers, which can cost anywhere from $ 300 to $ 700, and are made by brands such as Elite and Wahoo . Meanwhile, runners use Zwift’s app with their own treadmill.
Now, Zwift is headfirst in the hardware business itself. While a company spokesperson said it could not discuss anything specific – “it takes time to properly develop the hardware, and COVID has increased the pressure on production” – it will soon market its first product Hoping to bring in “
He said the hardware will make Zwift “a more immersive and seamless experience for users.”
Either way, Disha is not a surprise to the company, and we do not say that simply because Specialized as a strategist participated in this round. Cofounder and CEO Eric Min has told us in the past that the company was expected to produce its own trainers someday.
Given the immense success of in-home fitness company Peloton, it would not be surprising to see a treadmill follow, or even a completely different product. A Zwift spokesman said, “In the future, it is possible that we may bring in other topics or more gaming experiences.” (If there would be expert advice in this area, given that Swift rode Ilka Pananen, co-founder and CEO of the Finnish gaming company Supercell, just as an investor and board member.)
In the meantime, the company tells us that the kinds of classes that have proved successful for the peloton cannot be expected, as it can draw similarities.
While Zwift prides itself on users’ ability to organize group rides and runs and workouts, the classes, its spokesperson says, are “not in the offing.”