Online fitness startup Freeletics has raised $45 million in Series A funding, according to an announcement released yesterday. The funding round was led by FitLab, Causeway Media Partners and JAZZ Venture Partners, with additional support from Courtside Ventures, Elysian Park Ventures, ward.ventures and individual backer Tony Robbins.
Founded in 2013, Freeletics has built a number of fitness and training apps for European markets. Its flagship Freeletics Fitness Coach app, for instance, uses artificial intelligence to build personalized training plans for users.
News came out earlier this year that the company’s three cofounders had sold their shares to FitLab, providing the venture studio with a controlling majority. That same announcement came with news of an expansion into US markets, which Freeletics said is progressing at a rate of 120 percent growth.
“Freeletics is a phenomenal success story having achieved so much in such a short period of time,” Mike Melby, managing partner at FitLab, said in a statement. “We look forward to this partnership and are thrilled to be a part of the continued growth and progress of Freeletics in the US and internationally.”
Freeletics also enjoys relationships with a number of professional sports organizations, such as the San Francisco 49ers, the Boston Celtics, the Cleveland Cavaliers and the Los Angeles Dodgers.
What’s the impact
In the announcement, Freeletics CEO Daniel Sobhani said that the new funding would “enable us once again to intensify our strategy for global growth,” as well as support the continued delivery of its digital fitness products.
“The funding outcome reflects tremendous global confidence in a product we have always believed represents the cutting edge of self-development for today’s tech-savvy and health conscious consumers,” he said.
What’s the trend
Yesterday’s $45 million is the latest injection of capital into what was already a vivacious market. Freeletics’ app-driven fitness regimens are competing with similar products from digital startups like Aaptiv, Virtuagym and Fiit, as well as more established fitness chains such as Gold’s Gym. Beyond of the app, Peloton and Mirror both offer connected in-home exercise devices, while ClassPass’ virtual fitness membership network connects users to gyms or fitness centers near them.
On the record
“Freeletics is a true industry leader and the company's success story is no accident,” Mark Wan, managing partner at Causeway Media Partners, said in a statement. “The oversubscription of this investment round underlines the brand’s continued growth and further commitment to world-class operational execution.”