Soon, sharing your latest jog on Strava won’t just be a good way to show off your physical health, it will also serve a far more noble purpose: creating shareholder value for the masses.
Driving the news: Strava, the leading exercise tracking app, is planning an IPO to cash in on a surge of interest in long-distance running, according to the Financial Times. Its CEO said an IPO would allow Strava to finance more acquisitions.
Catch up: If you’re like this writer and prefer a leisurely stroll to a calf-crushing half-marathon, you may not be familiar with Strava. The app — which allows users to record and share workouts with others on the app — is now a must-have for runners and cyclists
- Strava now has around 50 million monthly active users, and said it’s on track to do US$500 million in annual recurring revenue from users paying for access to subscriber-only features.
Why it matters: Strava is one of the most successful examples of a new breed of social apps built around niche interests and communities that are growing quickly as older social media platforms, like Facebook, decline.
Yes, but: Strava is locked in a legal battle with Garmin, the maker of smartwatches and fitness trackers popular with many of Strava’s users, that it will likely want to resolve before testing public markets.—TS