Key points
- Strava, valued at $2.2 billion, is exploring a US initial public offering (IPO).
- Goldman Sachs, JPMorgan, and Morgan Stanley are among the banks invited to pitch for roles.
- The IPO could occur as early as early 2026, depending on market conditions.
- Strava boasts over 150 million active users across 185 countries. The company recently appointed a CFO, a common precursor to an IPO.
Strava, the popular fitness tracking app with over 150 million active users globally, is reportedly preparing for an initial public offering (IPO) as early as the beginning of 2026. Sources familiar with the matter reveal that the San Francisco-based company, valued at $2.2 billion in a recent funding round, has invited several prominent investment banks to compete for roles in the upcoming IPO.
Goldman Sachs, JPMorgan Chase, and Morgan Stanley are among those reportedly invited to pitch their services. The timing of the IPO, however, remains contingent upon prevailing market conditions.
The May 2024 funding round, led by Sequoia Capital, Square Ventures, TCV, and Go4it Capital Partners, significantly boosted Strava’s valuation. This latest development follows the company’s recent appointment of a Chief Financial Officer (CFO), a strategic move frequently undertaken by companies preparing for a public listing.
The addition of a CFO suggests a formalization of financial planning and reporting structures, crucial elements in the IPO process.
Strava’s success can be largely attributed to its unique blend of social networking and fitness tracking. The platform allows users to track and share their workouts, providing a sense of community and friendly competition.
Its popularity surged during the COVID-19 pandemic, as people sought ways to stay active and connected while adhering to social distancing measures. The platform’s functionality allows users to “give kudos” to friends and compare themselves against top athletes.
While Strava has not yet commented publicly and the banks involved have declined to comment, the increased US IPO activity last week, marked by six deals raising over $4 billion, suggests a favorable market climate for such an undertaking.
Strava’s decision to seek outside expertise will undoubtedly contribute greatly to its IPO success. The company has yet to finalize the amount it intends to raise or the precise valuation it will pursue.
