Virtual fitness platform Zwift announced a $120 million Series B fundraising round on Wednesday. The funding will be used to grow its treadmill-based online running platform and support its pro cycling esports endeavors.
Zwift, a multiplayer online training and racing platform for cyclists and runners, recently announced its virtual cycling platform will be used in the KISS Super League, which will become the first professional esports cycling league. Zwift’s Series B round was led by Highland Europe. Retail investment firm True, sports-tech investment company Causeway Media, and returning London-based investor Novator also contributed to the round.
“In 2018, more than one third of the Tour de France peloton were Zwifters,” said Eric Min, Co-founder & CEO of Zwift, in a press release. “With that support already in place, we are in the unique position of being able to combine affordable physical endeavour with video gaming technology, ultimately setting the stage for us to become the first true esport of its kind.”
“We’re not here to compete with pro cycling as we know it, we’re here to deliver new energy, entertainment, audiences and commercial partners to pro cycling. We want to create a new sport within a sport,” Min added.
More than one million people have created accounts on Zwift to date. Users range from amateur cycling enthusiasts, people who bike as part of fitness workouts, and professional athletes who use it to supplement their real-life training schedules. Min’s goal is to have Zwift appear in the Olympics someday, according to Techcrunch.
Cycling currently accounts for 98 percent of Zwift’s business. With this new funding, the company will aim to bolster its running virtual running platform, in addition to supporting esports tournaments.
Zwift users must provide their own bike or treadmill. Road bikes can connect with a Zwift-compatible trainer to turn the bike into a stationary machine for indoor training. Zwift is available on PC, Mac, Apple TV, iOS, and Android. Users can bike (or run) in front of a TV for an immersive effect. The Zwift software costs a monthly fee of $15.
“Zwift is a fantastically innovative company and they are certainly leading the way in the indoor training space,” said Tony Zappala, Partner of Highland Europe, in a statement. “It’s a highly scalable business and we’ve been impressed with how they have already managed to expand globally—already 70 percent of current subscribers are from outside the USA. Research points to an audience of 40 million competitive and enthusiast cyclists, and many of those lie in the traditional cycling nations of Central Europe, so in this market alone there is huge growth potential.”