Popular Fitness App Strava Clinches Valuation of More Than $2 Billion
Strava, whose valuation includes debt, says it acquired cycling app The Breakaway
Key Points
- Strava’s valuation reached $2.2 billion including debt after a fundraising round led by Sequoia Capital.
- Strava acquired The Breakaway, a cycling-training app, marking its second acquisition in two months.
- Strava has more than 150 million users and is approaching $500 million in annual recurring revenue.
Strava, the popular running and exercise app, has completed a fresh round of fundraising valuing the business at $2.2 billion including debt, Chief Executive Mike Martin said. The company is also announcing its second acquisition in two months.
Expansion during pandemic
The app surged in popularity during the Covid-19 pandemic, when people were going outdoors more for exercise, and has continued to ride health trends.
The latest fundraising round was led by Sequoia Capital and consisted of existing investors including TCV, Jackson Square Ventures and Go4it Capital, said Andrew Reed, a partner at Sequoia and a member of Strava’s board. After its last fundraising, which was in 2020, Strava was valued at more than $1.5 billion including debt.
Strava lets users, which it calls “athletes,” record and share activities with friends across dozens of sports. It is especially popular among runners and lets users see how their statistics stack up against those of pro athletes.
In addition to the fresh cash, the company said it has acquired a training app for cyclists called The Breakaway for an undisclosed amount.
The company’s valuation doesn’t include recent acquisitions.
Accelerating growth
The cycling-app deal follows a period of accelerating growth, Martin said. Strava saw over 50% growth in new users last year, he said, and is poised to reach $500 million in annual recurring revenue in the near future.
Strava last month announced the acquisition of Runna for an undisclosed amount. The app gives users personalized training plans for such races as 5Ks and marathons.
Running has boomed, with participation and interest in marathons jumping and Gen Z embracing running clubs.
Strava is reaping the benefits. It now boasts upward of 150 million registered users worldwide who record activities in more than 40 sports. Growth has been especially strong in some overseas markets including Brazil and Indonesia, Martin said.
The app, founded in 2009, is free and offers additional features for paid subscriptions.