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Zwift secures $120 million Series B investment

Zwift, a multiplayer online training and racing platform for cyclists and runners, has secured $120 million in funding, reflecting its commitment both to growing its new running discipline and also to expanding into esports.

Born out of the desire to create an indoor exercise option that was effective, social and engaging, the Zwift App enables users to ride or run with friends from all over the globe, complete structured workouts and participate in group events in several virtual environments.

The Series B round was led by Highland Europe whose investments include eGym, Huel, WeTransfer and Malwarebytes – with True, the retail, consumer and leisure investment firm behind the Ribble cycling brand; Causeway Media, an investor in both traditional sports and esports; as well as returning London-based investor Novator participating.

Tony Zappala, Partner of Highland Europe, said: “Zwift is a fantastically innovative company and they are certainly leading the way in the indoor training space. 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.”

Birgir Már Ragnarsson, Partner at Novator, a London based investment firm, added: “We are delighted to be continuing the journey with Zwift. We firmly believe in the enormous potential of Zwift and this is why we have chosen to invest further.”

Eric Min, Co-founder & CEO of Zwift, said: “With this significant investment, led by Highland Europe, Zwift is now more than ready to propel the business forward by providing innovative offerings that are greater in breadth and depth for cyclists and runners alike.

“In 2018, more than one third of the Tour de France peloton were Zwifters. 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.”

Mark Cavendish, 2011 World Champion and 30-time Tour de France stage winner, added: “Zwift has transformed the way the professional peloton trains. Before Zwift, there is no way I would have chosen to ride an indoor trainer. Now though, I genuinely enjoy it – it appeals to the gamer in me. Riders like myself are genuinely fitter now, thanks to Zwift.”

Logging more than 410 million virtual miles, more than one million people have created accounts on the Zwift platform to date, with greater expansion across markets to come. Earlier this year, the business also introduced Zwift Run and Zwift RunPod, a Bluetooth-enabled device that breathes life into any treadmill, at home or in the gym, syncing seamlessly with Zwift and transmitting data, relaying speed in game. On the back of this raise, Zwift is now ready to further innovate the indoor running experience.

Paul Cocker, Co-founder of True, said: “This investment allows Zwift to present an even more advanced offering to a growing audience of cyclists and runners in need of new ways to train and remain active indoors. As with the wider retail industry, the fitness industry is evolving rapidly, and we firmly believe that Zwift will be at forefront of that evolution.”

Wyc Grousbeck, Partner of Causeway Media and Owner of the Boston Celtics, said: “Zwift has already emerged as a leader in the cycling space on a global scale, and we’re excited to help accelerate the company’s expansion plans. With both technology and fitness in its DNA, Causeway Media is an ideal partner for Zwift, as they enter their next stage of growth.”

Zwift is available on PC, Mac, Apple TV, iOS and Android.

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