Sporting Negotiations: Millions for Munich Fitness App
The internationally renowned fitness app Freeletics has just completed a successful round of financing and has been able to find investors from the American sector in particular. With users in North America seeing the app grow strongly over the past five years, the goal is to use the new funds to drive global growth. Specifically, one wants to become even better known on the international market for this purpose. In comparison, Freeletics is considered one of the most successful apps from Germany and was originally founded by three Munich students.
Financing round of capital in the high tens of millions
Five unnamed investors are said to have made up most of the money collected this round. According to the management, it was possible to achieve financing in a "high double-digit million sum" and is now well positioned for the planned expansion in the market. What is known about the investors are their connections to various clubs and sports franchises from the United States. For example, investors from major brands such as the San Francisco 49ers from the American NFL, the football professional league, are now indirectly part of the portfolio. With major players such as Nike and Adidas seeing opportunities for strong growth in these markets, brand Americanization is a logical step.
With over 30 million users, Freeletics is one of the largest providers in the mobile fitness market. Not only have you been able to find new users in Germany, America and the United Kingdom over the past few years, you have also expanded your offer in the app. This included, for example, the creation of an outdoor fitness park, which offers the exercises that are offered in the app. A sports collection is also part of Freeletics' portfolio and is certainly an aspect of the more than twenty million euros in sales that the company has recently achieved in 2016. Newer numbers are currently unknown.
By entering the app, there are many new ways to market. In addition to classic devices and supports for fitness and sports, the topic of nutrition also plays a corresponding role for users. Freeletics is currently marketing a so-called "foreign model" - various exercises in the app can be used free of charge, for other offers a monthly flat rate or a single purchase of the corresponding videos is necessary.
Founders withdraw from the company
With the successful round of financing, the founders of the app, Joshua Cornelius, Mehmet Yilmaz and Andrej Matijczak, have announced that they want to retire. They want to devote themselves to new projects, while the management is to be led by a consortium around the managing director Sobhani. It also wants to open the way to find new opportunities, while the founders themselves want to invest their time in various new projects.