Company valuation set at $2.2 billion for Strava, potential impending stock sale suggests reports
Strava, the popular fitness tracking app, is considering going public and offering shares to investors, according to recent reports. The company, which has over 150 million users globally, saw more than 50% growth in new users last year, highlighting its growing global relevance.
After a round of funding earlier this year, Strava's valuation was set at US$2.2 billion, including debt. This marks a significant increase from its previous fundraising in 2020, when the company was valued at US$1.5 billion.
The Wall Street Journal reported this valuation following the acquisitions of AI-driven training apps Runna and The Breakaway. These acquisitions underscore Strava's commitment to serving athletes with richer training experiences.
Strava has also announced updates to its subscriber offering this year, including new AI-powered route tools. Users can now benefit from 'tappable' points of interest, such as cafes and toilets, and point-to-point routing for direct A to B routes.
The company is exploring hiring investment banks for an Initial Public Offering (IPO). Strava has invited banks including Goldman Sachs, JPMorgan, and Morgan Stanley to pitch for roles in the IPO process. These banks have been invited to present their advisory and underwriting capabilities for the potential offering.
Matt Anderson, who spent six years as the head of corporate finance and strategy at Block, Inc. (formerly Square) and led their IPO efforts in 2015, has joined Strava as its new Chief Financial Officer. Anderson's appointment is part of a dynamic leadership team under CEO Michael Martin, with the company also hiring for a Senior Director, Investor Relations and a Director of Revenue Accounting/SEC Reporting.
The IPO could potentially take place as early as 2026, but the exact timeline and the amount to be raised are yet to be finalised. Gen Z increasingly turns to Strava for connection through movement, making it an attractive prospect for investors.
As Strava approaches $500 million in annual recurring revenue, the fitness app is poised for continued growth and innovation. Keep an eye on this exciting development in the tech and fitness industries.
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