Popular online fitness training platform Zwift raised $450 million in a new investment round led by U.S. private equity firm KKR & Co Inc ,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 as the information was not public.
Zwift, which is geared to running and cycling enthusiasts, said it will not be disclosing details on its valuation.
The firm has over 2.5 million accounts registered in 190 countries and uses immersive 3D technology to help runners and cyclists train virtually through its app. The app has garnered more than 500,000 downloads on Alphabet Inc’s Google Play store.
The investment will be used to develop its core software platform and increase headcount, 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 was held on the Zwift platform after the COVID-19 pandemic forced the postponement of the actual annual July race. The company will also be the host platform for the first ever esports cycling world championship, which will be held this December.
Exercise bike makers such as Peloton Interactive Inc PTON.O have benefited from increased demand during the COVID-19 pandemic as closed gyms and fitness clubs turned people towards streaming exercise services and home work-out equipment.