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- California-based company said to have raised US$620m in total since 2015 launch
- Other new investors include Permira, Specialized’s Zone 5 Ventures and the Amazon Alexa Fund
- Zwift app boasts over 2.5m registered users across 190 countries
Online fitness platform Zwift has raised a further US$450 million after selling off minority shares in a major round of funding led by global investment firm KKR.
The California-based company, whose gaming-inspired platform enables cyclists and runners to train and compete in virtual worlds, says it will use the fresh capital to accelerate the development of its core product, bring Zwift-designed hardware to market, and fund the global expansion of its subscription business.
Besides KKR, which is investing through its Next Generation Technology Growth Fund II, other new investors in the Series C round include Permira, Specialized Bicycle Components’ venture capital fund, Zone 5 Ventures, and the Amazon Alexa Fund.
Existing investors True, Highland Europe, Novator and Causeway Media have also participated in the round, which will see some investors purchase shares from certain existing Zwift shareholders.
With over 2.5 million registered users of its app across 190 countries, Zwift has grown quickly to become a global leader in the at-home connected fitness market. Its popularity has surged throughout the Covid-19 pandemic, while the company has also ventured into esports with a number of professional events, including the first Virtual Tour de France in July.
Later this year, it will be the host platform for the inaugural UCI Cycling Esports World Championships.
“We see tremendous potential ahead as Zwift invests further in its digital and physical products to enhance the experience for its global community of enthusiastic users,” Stephen Shanley, a director at KKR, said in a statement. “This investment fits perfectly with our growth equity strategy of backing leading tech entrepreneurs as they scale globally.”
According to TechCrunch, Zwift has now raised US$620 million in total since its launch in 2015, and is valued at north of US$1 billion.
Following the latest funding round, which marks the start of a new strategic partnership between Zwift and cycling brand Specialized, the company says it plans to increase the headcount in its core product teams. Ilkka Paananen, the chief executive and co-founder of Finnish gaming company Supercell, has also become an investor and independent board member.
“With this investment, Zwift is primed to operate in a broader fitness market and deliver on our ambition to provide gamified fitness through integrated software and hardware, to anyone who wants to have fun while getting fit at home,” said Eric Min, the company’s chief executive and co-founder.
“We will be accelerating our investment in the core business, improving the overall product experience, and bringing forward new features, more content and Zwift designed hardware, all with the support of KKR and our new outside investors who can help drive our growth.”
Online fitness platform Zwift has raised a further US$450 million after selling off minority shares in a major round of funding led by global investment firm KKR.
The California-based company, whose gaming-inspired platform enables cyclists and runners to train and compete in virtual worlds, says it will use the fresh capital to accelerate the development of its core product, bring Zwift-designed hardware to market, and fund the global expansion of its subscription business.
Besides KKR, which is investing through its Next Generation Technology Growth Fund II, other new investors in the Series C round include Permira, Specialized Bicycle Components’ venture capital fund, Zone 5 Ventures, and the Amazon Alexa Fund.
Existing investors True, Highland Europe, Novator and Causeway Media have also participated in the round, which will see some investors purchase shares from some Zwift’s existing shareholders.
With over 2.5 million registered users of its app across 190 countries, Zwift has grown quickly to become a global leader in the at-home connected fitness market.
Its popularity has surged throughout the Covid-19 pandemic, while the company has also ventured into esports with a number of professional events, including the first Virtual Tour de France in July. Later this year, it will be the host platform for the inaugural UCI Cycling Esports World Championships.
“We see tremendous potential ahead as Zwift invests further in its digital and physical products to enhance the experience for its global community of enthusiastic users,” Stephen Shanley, a director at KKR, said in a statement.
“This investment fits perfectly with our growth equity strategy of backing leading tech entrepreneurs as they scale globally.”
According to TechCrunch, Zwift has now raised US$620 million in total since its launch in 2015, and is valued at north of US$1 billion.
Following the latest funding round, which marks the start of a new strategic partnership between Zwift and cycling brand Specialized, the company says it plans to increase the headcount in its core product teams. Ilkka Paananen, the chief executive and co-founder of Finnish gaming company Supercell, has also become an investor and independent board member.
“With this investment, Zwift is primed to operate in a broader fitness market and deliver on our ambition to provide gamified fitness through integrated software and hardware, to anyone who wants to have fun while getting fit at home,” said Eric Min, the company’s chief executive and co-founder.
“We will be accelerating our investment in the core business, improving the overall product experience, and bringing forward new features, more content and Zwift designed hardware, all with the support of KKR and our new outside investors who can help drive our growth.”
