Strava Acquisition Boosts Valuation to $2.2 Billion Dollars

Strava, the global exercise tracking platform, has seen its valuation soar to $2.2 billion following its acquisition of the London-based running app Runna. This marks the first time since November 2020 that the company has disclosed its worth. The valuation represents a significant leap from $1.5 billion during the height of the pandemic, when new subscribers flocked to the platform in record numbers due to lockdown-induced fitness trends.

The popularity of running has been a driving force behind this growth, with over one billion runs logged on Strava last year alone. The acquisition of Runna, a specialist coaching app, adds to Strava’s suite of offerings for the running community. Michael Martin, Strava’s chief executive, emphasised that the UK remains a key market for the company and hinted at further investments in London as part of their strategy. The purchase of Runna is not just a movement to cement Strava’s position among runners but also an opportunity to expand its development capabilities in one of the world’s leading tech ecosystems.

Runna is currently staffed by approximately 150 employees, and the deal is expected to turn London into a crucial hub for Strava’s engineering and product design efforts. Martin noted that while Strava operates offices worldwide, the company lacked a tech development base in the UK until now. With the integration of Runna, London is poised to become a centre for technological innovation within the organisation.

Sequoia Capital, which has been a backer of Strava since 2014, increased its investment through this acquisition, although the exact figures remain undisclosed. Andrew Reed, a partner at Sequoia Capital, affirmed London’s appeal as a tech hub, citing its outstanding universities, growing AI expertise, and entrepreneurial talent.

Despite this momentum, London’s prominence as Europe’s leading tech centre has recently come under scrutiny. Data from venture funding research group Dealroom suggests that Paris has now overtaken London in terms of enterprise value among tech businesses. The value of Paris-based start-ups reportedly grew more than five-fold between 2017 and 2024.

Strava has also announced another acquisition, the US-based AI cycling app The Breakaway, which was developed under Silicon Valley’s renowned Y Combinator programme. This move further demonstrates Strava’s commitment to consolidating its presence across multiple fitness disciplines catered to a global audience.