Zwift had raised money before now, but the lastest round of funding dwarfs what the company did before. And having been backed by such a large sum to invest in the year ahead - at $120 million - it has big plans.
Currently huge in the cycling world, Zwift has just raised $120 million to fund its expansion plans in the year ahead.
The training app, which effectively combines indoor training with virtual reality, was devised just four years ago. But already it says it has over 1 million users.
The company had previously raised $46 million, meaning the latest injection of cash is a very significant step forward for it.
Zwift will use the money to develop its KISS esports leagues; racing leagues that will involve riders from pro teams and amateur or leisure cyclists who use Zwift all over the world.
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Zwift is used by riders who take part in training rides or races over courses mapped on the app.
Sensors from the riders’ stationery trainers are linked to the riders screens – phone, TV, tablet – and enable the app determine how fast the rider is going on a course.
Cyclists can ride alone or against each other. It is the app’s competitive function that looks set to be its main development opportunity in 2019 and beyond.
However, while the KISS leagues will be rolled out using the latest round of funding, Zwift also plans to diversify into other sports.
And while the app is used in about 150 countries, it is only available in English. The funding will be used to ensure other languages are catered for.
Zwift was founded in 2014 by its chief executive, and former Wall Street trader, Eric Min. His co-creators are Jon Mayfield, Scott Barger and Alarik Myrin.
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"I started my career on Wall Street. This idea sort of mixes what I've been doing in my profession and my passion, which is cycling," Min said.
“We have big plans for Zwift and esports. 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.”
Among the seven Continental and ProConti teams signed up to Zwift’s leagues next year are Hagens Berman Axeon and British squads Madison Genesis, Team Wiggins Le Col and Canyon dhb p/b Bloor Homes.
“Axeon has a track record of unearthing world class young talent. So I’m optimistic that esports on Zwift will help amplify this focus," said 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.”
Esports leagues on Zwift
The KISS Super League is an invite only league hosted on Zwift that will feature ProContinental and Continental teams as well as Zwift community level teams.
Each team will be made up of eight riders. The make-up of each team will be selected prior to the first round which starts on January 23rd.
For each round of races, four riders from each team will race to score points for their team in the overall standings. The Women's KISS Super League will follow a similar format.
In addition to the KISS Super League, there will be a community league running alongside it.
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