Nov 16 (Businesshala) – AllTrails, which operates a popular digital guide app for hikers, has raised $150 million in fresh capital from private equity firm Permira’s growth fund, the US company’s chief executive told Businesshala on Tuesday. Told.
Another private equity shop Spectrum Equity, which bought a majority stake in AllTrails in 2018 for $75 million, will remain a majority owner following the latest financing.
The app, first launched in 2010, plans to use the capital to recruit and expand into international markets, said Ron Schneiderman, CEO of AllTrails.
“One area of investment will be on personalization … to really improve the search and discovery experience. There’s a lot more we can do to enhance the on-trail experience,” Schneiderman said.
Apps like AllTrails are seeing strong growth during the pandemic, as working from home has led people to seek safe outdoor activities like hiking.
AllTrails said it has more than 30 million users globally and covers trails in 190 countries after experiencing triple-digit growth in 2020. Users can search, share and review popular trails on the app.
According to data from SensorTower, in 2020, the app was installed by 8.7 million users worldwide, up 89% from the year-ago period. In the most recent quarter, AllTrails’ average monthly active users were up 36% year-over-year.
The app is free to use, but charges $29.99 per year for the Pro version, which adds more features, including offline map downloads. Its paid users of over 1 million account for most of AllTrails’ revenue.
“We are confident that what COVID did was encouraging people to do more outdoor activity, and this will continue well into the future as they want to enjoy nature,” said Bruce Chizen, senior advisor at Permira Said, who led the deal.
In September, Permira also participated in a $450 million investment in Zwift, an online fitness platform for cyclists and runners. (Reporting by Crystal Hu in New York; Editing by Muralikumar Anantharaman)