Sep 16, 2020 - Economy

Indoor cycling platform Zwift raises $450 million

Illustration of a running track with one lane splitting off into a new direction.

Illustration: Annelise Capossela/Axios

Zwift, a Long Beach, Calif.-based indoor cycling and running platform, raised $450 million led by KKR at a valuation north of $1 billion.

Why it matters: This round puts a punctuation mark on what has been a huge week for the connected fitness space. First, Peloton reported blowout numbers and new hardware. Then, Apple announced its own fitness content subscription product tied to watches, followed by in-person spin class company Flywheel filing for bankruptcy protection.

  • Other investors included Permira, Specialized Bicycle, and return backers Highland Europe, Novator, and Causeway Media.

The bottom line: "Zwift uses what it calls an 'immersive and seamless' experience that motivates users with fitness games and events like a virtual Tour de France. That means bringing the outdoor experience of running or cycling indoors, just as Peloton does. But the company goes further by immersing users in 3D computer-generated worlds," GamesBeat' Dean Takahashi reports.

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