European Fitness Startup Secures Significant Funding From Multiple US Venture Capital Firms
A European fitness startup called Freeletics has amassed more than 30 million users around the world and is now announcing a significant funding round from major U.S.-based venture capital companies. Founded in 2013, German-based Freeletics is today revealing investments from Causeway Media Partners, JAZZ Venture Partners, Courtside Ventures, Elysian Park Ventures and ward.ventures, which are affiliated with several sports franchises including the San Francisco 49ers, Boston Celtics, Cleveland Cavaliers and Los Angeles Dodgers.
The core function of Freeletics is to provide a Freeletics Bodyweight mobile app that can assess fitness levels and use artificial intelligence to provide personalized, custom training plans. The main purpose of the new raise of capital is to further drive global growth.
“We started out as fans of the product, due to its authenticity and hardcore feel. Then we learned of the success of the company, which entailed revenue growth and user engagement and retention unlike anything we had seen in the industry. It is one of the most exciting opportunities we’ve ever come across,” says FitLab managing partner Mike Melby. FitLab, a venture studio managed by former executives of Nike and New Evolution Ventures, has partnered with Freeletics to recapitalize Freeletics and provide growth capital as well.
The capital raise also marks the exit for Freeletics’ 3 co-founders, leaving it in the hands of CEO Daniel Sobhani, who will be part of a board of directors that includes Mark Wan from Causeway, John Spinale from JAZZ and FitLab.
“We believe the success of Freeletics thus far is just the beginning,” says Wan. “This is a best-in-class team and product in a large, rapidly growing market. Freeletics is poised to significantly increase penetration in its core markets and accelerate international expansion, and our investor group will work closely with Daniel and his team to support these efforts.”
Up until this round of funding, the specific amount of which has not been disclosed, Freeletics was bootstrapped and there were no previous investment rounds. Top competitors include Sworkit, Runtastic, MapMyFitness and Kayla Itsines.