Need to Know
- Digital fitness platform Strava has raised $110 million in funding, allowing the startup to expand its features and attract new subscribers.
- Strava is also reporting that it is adding over two million members per month.
- Since the onset of the COVID-19 pandemic, home fitness platforms like Strava and Peloton have seen a boost in subscribers.
- Strava now serves over 70 million members in over 195 countries.
Strava has raised $110 million in venture funding, the social fitness platform announced this week. In partnership with investment firms TCV and Sequoia, the startup plans to use the funding to grow the platform’s user base and develop new features.
“We’re excited to partner with TCV and Sequoia. Together we’re building for athletes,” said Strava co-founder and CEO Michael Horvath. “Today that means making Strava indispensable to athletes everywhere. When we do that well, we connect athletes to what motivates them, fuel the growth of our community, and strengthen our business.”
Just this year, Strava added two million athletes per month to its user community, totaling more than 70 million members in 195 countries. The company also rolled out over 60 new features for athletes.
Strava’s long-term goal is to become “essential for anyone aspiring to live a healthy life.” As such, the company has also teamed up with urban planners and city governments in over 300 cities to help make cities safer for pedestrians and cyclists and encourage an active lifestyle.
“Strava has spent a decade accumulating the mojo required to help people become healthier and fitter,” said Michael Moritz, partner at Sequoia.
The long-lasting effects of the COVID-19 pandemic, requiring people to workout at home or outdoors, have resulted in an uptick in the use of online fitness platforms, a likely reason for the recent boost in Strava subscribers, too.
Competitive brands like Lululemon and Peloton are also adapting and experiencing growth amid the pandemic.
Lululemon grew 157% in retail sales in its second-quarter this year. In June, the popular fitness retailer acquired Mirror, a reflective smart device that transforms into a screen during workouts, allowing users to work out at home and connect with other members at the same time.
Peloton grew 232% in its first quarter of 2020, hitting 1.33 million subscribers. The popular new brand, which specializes in home fitness, hosted its largest online class ever back in May, with over 23,000 users joining a live workout together from home.
Even Apple has dipped its toe into the home fitness space, launching its first workout platform, Fitness+. The new program will be available by the end of 2020 and will feature classes such as cycling, yoga, dance, and more.