Zwift, the US-based operator of a social exercise platform, raised $450m yesterday from investors including e-commerce and home electronics firm Amazon’s Alexa Fund and bicycle producer Specialized Bicycle Components’ Zone 5 Ventures fund.
Investment firm KKR led the round, which also featured private equity firm Permira, investment firms Novator Partners and True, venture capital firm Highland Europe and VC fund Causeway Media. It valued the company at more than $1bn, according to TechCrunch.
Founded in 2014, Zwift runs an online platform where runners and cyclists can connect and race each other at home in immersive computer-generated environments. The platform has more than 2.5 million users and has begun organising dedicated events such as a virtual Tour de France.
The funding has been earmarked for further development of the company’s software in addition to the commercial launch of its first hardware products, though it has not revealed what form those products will take. Like its peer, Peloton, it has experienced a large growth in user numbers since the start of the Covid-19 pandemic.
Eric Min, co-founder and CEO of Zwift, said: “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.
“To make this happen, we will be increasing headcount within our core product teams, investing in the very best people.”
Chris Yu, Specialized’s head of product and innovation, added: “Our goal is to pedal the planet forward by getting more riders riding, and we are beyond excited at the opportunity to partner with Zwift to break down the barriers to riding indoors on the world’s most engaging platform.”
Zwift has now secured more than $620m in total, according to TechCrunch. Highland Europe led a $120m round for the company in December 2018 that included True, Causeway Media and Novator.
Novator led Zwift’s $27m series A round in 2016 to take its total funding to $45m, investing with bicycle maker Samchuly, Shasta Ventures, Waypoint and Max Levchin.
The series A round followed an undisclosed amount from mobile game publisher Colopl earlier that year while Samchuly and Waypoint participated as existing backers.
Image courtesy of Zwift Inc.
