Funding Round Boosts Fitness App Strava’s Valuation to $2.2 Billion
Fitness app Strava was reportedly valued at $2.2 billion in a recent funding round.
That valuation is up from the $1.5 billion it achieved in its previous funding round, in 2020, The Wall Street Journal (WSJ) reported Thursday (May 22), citing its interviews with Strava CEO Mike Martin and Sequoia Capital Partner Andrew Reed.
The report did not include the amount raised in the round.
Strava did not immediately reply to PYMNTS’ request for comment.
The company’s app has about 150 million registered users worldwide, offers both free and paid memberships, and is nearing $500 million in annual recurring revenue, according to the WSJ report.
This report came a day after Strava announced its acquisition of cycling training app The Breakaway and unveiled a new suite of subscriber features.
The Breakaway is a “perfect fit” for Strava, Martin said in a Wednesday (May 21) press release.
“When Strava was founded more than 16 years ago, it was created initially for cyclists — these users remain important members of our global community, and we are excited to enhance their experience through this acquisition,” Martin said.
Strava announced another acquisition — that of running training app Runna — on April 17.
“Coming off Strava’s accelerated innovation and unprecedented growth last year, it was the right time to look for complementary businesses that could create even greater value for our users,” Martin said when announcing the Runna acquisition.
Strava’s new suite of subscriber features announced Wednesday help users find popular routes to run, ride or walk; discover points of interest like cafes, restaurants and viewpoints; and see additional comparison metrics, according to a press release.
The company’s app was ranked No. 1 in the PYMNTS Provider Rankings of Fitness Apps in 2024.
Fast-casual restaurant Chipotle partnered with Strava on motivational text messages, exclusive creator content and promotions of Chipotle meals designed for healthy lifestyles.
“With health and wellness top of mind for our guests, this is a great way to show how the Chipotle ingredients can be customized to fit and fuel any dietary restrictions or lifestyle routines,” Chipotle CEO Scott Boatwright said in February during the restaurant firm’s quarterly earnings call.
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