Strava is seeking investment banks for its initial public offering following a busy year of acquisitions and a $2.2 billion valuation, according to published reports.
In an article by Reuters on Thursday, the San Francisco-based company has asked Goldman Sachs, JPMorgan and Morgan Stanley and other banks to consult on for roles on the prospective IPO.
The news comes following a busy year for Strava after it purchased Runna in April and cycling training app The Breakaway in May. A round of funding lead by Sequoia Capital that was completed in May revealed that Strava’s value had topped $2 billion — with existing investors Jackson Square Ventures, TCV and Go4it Capital all on board.
Strava was founded in 2009 by Michael Horvath and Mark Gainey and has become a powerhouse in running, cycling and other sports as it allows users to sync workout data, share posts, track activities and participate in challenges — in addition to form clubs within the platform. Users can give “kudos” to approve posts and also send private messages. Strava has integrations with well over 100 app partners and services like Garmin, Apple Fitness+, Coros and Samsung Health, among others.
There are now more and 150 million registered worldwide users, according to CEO Mike Martin, as paid premium subscriptions have increased. The company posted $275 million in revenue in 2023, with Martin saying in May that he expects Strava to reach $500 million in yearly revenue.
A public listing could happen by early 2026 based on the current market climate. What is unclear is what valuation Strava will claim in a potential IPO and how much it looks to raise. But the company hired Matt Anderson as its chief financial officer last month in a sign that a public facing presence is on the horizon.
