Cycling app rakes in $120 million funding round

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By Michael Krumholtz December 31, 2018

Zwift, a virtual reality cycling app out of Long Beach, California, has generated $120 million worth of funding in its latest round.

The esports app acts as a regular stationary bike but with a virtual reality twist that lets riders get immersed in pre-designed outdoor routes. Riders can ride races against each other or do time trials on their own, as the app combines exercise with gaming.

“We have big plans for Zwift and esports,” said Eric Min, Zwift CEO and Co-Founder. “We’ve been consulting with the cycling industry and there’s a lot of excitement around what we have planned for next year. I can’t wait for people to know everything we have planned but for now, you’ll just have to wait and see.”

Recently, Zwift also announced the launch of a competition called the KISS Super League. The new funds from this latest round will go in to making that event a reality. One of the future partners for the league, Axeon, said its excited to see new types of events that center around cycling, whether it be real or virtual.

“Axeon has a track record of unearthing world class young talent so I’m optimistic that esports on Zwift will help amplify this focus.” says Hagens Berman Axeon team owner, Axel Merckx. “Professional cycling needs a shake up from time to time, and Zwift is certainly capable of adding an extra dimension to bike racing. This is something both professional riders and cycling fans should be taking a good look at.”

According to Bloomberg, the funding round was led by London’s Highland Europe. In the future, Zwift could also be looking to expand beyond cycling to tackle other outdoor sports like kayaking, Min has said.