(Reuters) – Popular online fitness platform Zwift has raised $ 450 million in new round of investment led by US private equity firm KKR & Co Inc KKR.N, the company said on Wednesday.
The latest investment values the California-based company at more than $ 1 billion, a person familiar with the matter told Reuters, who declined to be identified because the information was not public.
Zwift, which targets running and cycling enthusiasts, said he would not disclose details of his rating.
The company has over 2.5 million registered accounts in 190 countries and uses immersive 3D technology to help runners and cyclists train virtually through its app. The app has garnered over 500,000 downloads from Alphabet Inc.’s Google Play store.
The investment will be used to develop its core software platform and increase its workforce, the company said.
Private equity firm Permira, Amazon Alexa Fund and Specialized Bicycle Components’ venture capital fund Zone 5 Ventures were also investors in the recent funding round.
In July, Virtual Tour de France took place on the Zwift platform after the COVID-19 pandemic forced the postponement of the annual July race. The company will also be the host platform for the first-ever esport cycling world championship, to be held in December.
Manufacturers of exercise bikes such as Peloton Interactive Inc PTON.O have benefited from increased demand during the COVID-19 pandemic, as closed gyms and fitness clubs have referred people to continuous exercise services and home workout equipment.
Reporting by Aakriti Bhalla in Bengaluru; Edited by Bernard Orr