SoftBank leads new funding round for US$2 billion fitness app Keep as more people exercise at home
- Keep now has a value of about US$2bn after the investment and is weighing an initial public offering as soon as this year, sources say
SoftBank Group Corp.’s Vision Fund led a US$360 million funding round in the start-up behind China’s most popular workout app Keep, as coronavirus-driven gym closures prompt more users to exercise in their homes.
Beijing Calories Technology Co. said its series F round also drew investment from Hillhouse Capital, and Tencent Holdings. Keep is now valued at about US$2 billion after the investment and is weighing an initial public offering as soon as this year, according to people familiar with the matter, who asked not to be identified as the information is private.
Coatue Management, GGV Capital, Bertelsmann Asia Investments, 5Y Capital and Jeneration Capital also participated in the latest funding round, the company added.
A representative for Keep declined to comment on the valuation, adding the company has no IPO plans for now.
Founded in 2014, Keep provides customised exercise sessions and instruction to about 300 million registered users. It has average monthly active users of 38 million. In addition to designing tailored indoor workout plans, the app offers fitness equipment and weight-conscious snacks for sale, according to its website.
The company released its own home exercise bike in 2019, entering the indoor cycling sector which has become an investor darling during the pandemic. Competitors include the KKR & Co.-backed virtual reality cycling software start-up Zwift, and larger rival Peloton Interactive, whose shares surged more than 400 per cent last year.
