After a recent round of funding, Strava’s valuation has reached $2.2 billion, including debt, based on a published report and statements from CEO Mike Martin on Thursday.
According to the Wall Street Journal, the popular running and multisport exercise app just finished another round of fundraising led by Sequoia Capital with existing investors Jackson Square Ventures, TCV and Go4it Capital.
Martin noted that Strava’s growth, boasting 150 million registered worldwide users, has seen major upticks in premium subscriptions and posted $275 million in revenue in 2023. He said the company is now on pace to reach $500 million in yearly revenue.
And while subscriptions account for the bulk of the Strava’s profits, sponsored challenges, tie-ins with organizations like New York Road Runners are revenue drivers while continuing to serve as a data-driven social homebase for running and cycling clubs.
This reach extends to more than 185 countries and anchors Strava in the competitive fitness app space that is thriving on paid subscriptions.
The company also announced that it has acquired cycling training app The Breakaway, its second purchase in two months.
In April, Strava added popular London-based running app Runna to its portfolio and now pulls a dedicated cycling user base onto the roster.
While specifics of The Breakaway deal were not disclosed, the cycling app creates custom training plans for riders aiming to hit certain benchmarks. The Breakaway is a Truckee, California-based startup led Jordan Kobert and Kyle Yugawa and launched in 2021 and have raised $2.9 million in funding.
Martin noted that the record revenue has driven Strava’s push toward pursuing acquisitions.
“When Strava was founded more than 16 years ago, it was created initially for cyclists—these users remain important members of our global community, and we are excited to enhance their experience through this acquisition,” Martin said in a statement.
Strava claims that users of The Breakaway that feed their data onto Strava upload twice as many activities compared to cyclists who use other services.
A subscription for The Breakaway is $9.99 a month or $69.99 a year and Strava says current users won’t see any changes in pricing. But with a two high profile services now in-house, subscribers of The Breakaway and Runna will have to see if Strava intends for the brands to continue separately or integrate keep components of both into its platform.
While some of its core features continue to be included in a free tier, a premium Strava subscription costs $79.99 per year and Runna is $119.99 per year.
