Freeletics, an artificial intelligence-powered nutrition and fitness coaching app, announced yesterday the closing of its $25 million Series B funding round.
The round was led by JAZZ Venture Partners and Causeway Media Partners, with contributions from KKCG.
WHAT IT DOES
Founded in 2013, Freeletics uses AI technology to coach users through digital workouts and meal plans. The Freeletics coaching algorithm gives users customized fitness and nutrition tips based on personal preferences, user feedback and scientific research.
Beyond the coaching, Freeletics has a community page where people can connect, share results and motivate each other.
Since its start, the app has racked up 48 million users across 175 countries. The training and nutrition bundle, which includes customized training plans, AI-coaching and nutrition support, starts at $2.21 per week.
WHAT IT’S FOR
With this financial support, Freeletics plans to develop new technologies, expand into new markets – especially in the U.S. – and create new business verticals.
“We are very grateful for our success and the support of our fantastic community over recent months and years. With our current trajectory and strong growth efficiency, this funding will drive us through the next turning point in our journey, fueling major product innovations as well as global expansion, especially in markets such as the U.S.,” Freeletics CEO Daniel Sobhani said in a statement. “Now more than ever with the effects of COVID-19, it’s crucial that we provide the most holistic and personalized solution we can to help people become their best selves physically, mentally and emotionally.”
MARKET SNAPSHOT
Freeletics has been working on breaking through in the U.S. market for some time. In 2018 the company had its first funding round, which included U.S. investors, and the founders sold their shares to FitLab. Soon after, Freeletics raised $45 million in Series A funding.
Aaptiv has a similar platform and offers AI coaching to help users meet their fitness goals.
As COVID-19 continues to push people out of the gym and into the home for their workouts, tech companies are building tools to assist the transition. Apple, for example, recently unveiled its new fitness subscription, Apple Fitness+.
ON THE RECORD
“Despite the significant user success we’re already seeing, we are just at the beginning of a new industry paradigm,” Sobhani said.
“Our vision at Freeletics is to provide a life-changing experience at scale, delivering our users ten times the long-term behavior change typically achieved by people starting a new fitness regime. To achieve this, we have to think unconventionally and take big steps, expanding into further markets and introducing new verticals. The next few years are definitely going to be very interesting for the industry.”
