LONG BEACH, Calif. (BRAIN) — The online cycling platform Zwift has secured a $120 million Series B investment. The company, which started with a gaming-style virtual riding experience, has expanded into a running game and non-gaming indoor training options. It said it will use the additional funding to expand into e-sports — professional gaming.
The Series B round was led by Highland Europe, whose investments include eGym, Huel, WeTransfer and Malwarebytes. Other participants in the funding were True, the investment firm behind the Ribble cycling brand; Causeway Media, an investor in both traditional sports and e-sports; and London-based investor Novator, a previous investor in Zwift.
"Zwift is a fantastically innovative company and they are certainly leading the way in the indoor training space," said Tony Zappala, a partner in Highland Europe, in a news release. "It's a highly scalable business and we've been impressed with how they have already managed to expand globally - already 70 percent of current subscribers are from outside the USA. Research points to an audience of 40 million competitive and enthusiast cyclists, and many of those lie in the traditional cycling nations of Central Europe, so in this market alone there is huge growth potential."
Eric Min, the co-founder and CEO of Zwift, said, "With this significant investment, led by Highland Europe, Zwift is now more than ready to propel the business forward by providing innovative offerings that are greater in breadth and depth ... "In 2018, more than one third of the Tour de France peloton were Zwifters. With that support already in place, we are in the unique position of being able to combine affordable physical endeavour with video gaming technology, ultimately setting the stage for us to become the first true esport of its kind."
