Strava, an exercise-tracking app final valued at $2.2 billion, is benefitting from Gen Z’s obsession with run golf equipment and marathons and is trying towards a future IPO, in line with its CEO.
Michael Martin, who took over as CEO in 2024 from Strava cofounder Michael Horvath, instructed the Monetary Instances the corporate has the “intention to go public at some point,” and famous {that a} public itemizing “provides easy access to capital in case we wanted to do more and bigger acquisitions.”
Martin declined to offer extra element to the FT on when the corporate would go public. A spokesperson for Strava didn’t instantly reply to a request for remark.
The corporate already acquired U.Ok.-based teaching app Runna and biking coaching app The Breakaway for undisclosed sums earlier this yr. These personalised teaching choices—when mixed with the app’s social options that permit customers to trace their pals’ exercises and provides digital “kudos”—have doubtless elevated Strava’s following amongst tech-savvy youth.
Strava has additionally benefited from Gen Z’s transfer towards more healthy life for the reason that pandemic that will clarify Starbucks’ foray into protein lattes and the sluggish loss of life of boozy nightclubs.
Working particularly has develop into Gen Z’s newest fixation, and plenty of see the exercise as a strategy to join with others whereas additionally staying match. Whereas younger folks reportedly really feel burnt out by relationship apps, Strava’s Yr In Sport: Pattern Report final yr reported a 59% improve in operating membership participation globally in 2024.
And among the many 5,000 Strava customers and non-users surveyed, 1 in 5 Gen Z respondents went on a date with somebody they met by means of a operating membership and have been 4 instances extra prone to need to meet folks whereas exercising than at a bar.
However operating isn’t only for socializing. The New York Metropolis Marathon additionally attracted a document 200,000 lottery candidates again in March for its race subsequent month, up 22% from a yr in the past.
Estimates of Strava’s person knowledge present simply how a lot the corporate has benefited from the latest cardio craze. The corporate claims over 150 million customers, up from greater than 120 million in 2023. Its app downloads from January to September have been additionally up 80% in comparison with final yr, in line with Sensor Tower.
Whereas it’s unclear when Strava might go public, it has already invited banks akin to Goldman Sachs and JPMorgan to pitch it for participation in a possible IPO, Reuters reported final month.
Horvath teased the opportunity of an IPO earlier than he stepped down as the corporate’s chief in 2023. He claimed the one who would exchange him as CEO would wish a unique skillset for navigating the corporate’s “next chapter.”
On going public, Horvath additionally mentioned in 2022, “It’s a means to an end and it’s something we would consider at the right time.”
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