Fitness Keeper, Developer of Runkeeper App, Secures $85 Million Strategic Investment from ASICS

According to MobiHealthNews, Boston-based FitnessKeeper, the maker of the Runkeeper fitness app, recently announced that it has secured an $85 million strategic investment from the Japanese apparel company ASICS.

Jason Jacobs, founder and CEO of RunKeeper, reflected on the financing round in an article: “We are fully confident in partnering with ASICS to jointly realize our vision.” Jason Jacobs stated, “Both FitnessKeeper and ASICS have strong corporate foundations and share a focus on positioning running as a core component of the fitness experience. There is a strong alignment between our brands and core values. Leveraging the tracking and analytics features available in app stores, we know that ASICS running shoes are by far the most frequently used footwear among RunKeeper users.”

“Pocket Fitness,” as the name suggests, is a mobile application installed on personal smartphones, designed to provide personalized fitness and exercise services. Users can monitor the service life of their footwear, track the distance walked in kilometers, and create customized workout plans. Furthermore, as illustrated in the figure above, the app integrates map navigation features, enabling users to select optimal fitness routes and easily locate nearby hotels, hospitals, and hostels, thereby delivering a thoughtful and intelligent fitness experience.

In addition, “Pocket Fitness” is also attempting to attract a new round of financing by partnering with several large, well-known apparel companies, aiming to build a new type of sales platform.

Recently, in an interview with MobiHealthNews, Jacobs discussed his ambitious plans to enter the apparel industry, targeting companies such as Under Armour and Adidas. Both of these companies have recently acquired competitors of Runkeeper. To say the least, Jacobs’ idea of breaking into the apparel sector appears somewhat unrealistic without the backing of large, experienced clothing companies.

ASICS had previously engaged with digital data; its feature-rich fitness app has been available on mobile app stores since November 2011.

ASICS stated that its investment in Runkeeper was driven not only by the platform’s potential as a one-to-one marketing channel but also by the intrinsic value of the platform itself. ASICS does not intend to alter the platform’s functionality.

“For App users, their experience will not change significantly,” Jacobs mentioned in the article. “We will not only ensure that RunKeeper continues to operate, but the company will also accelerate its pace of operations. If we can have a partner bring us many of the resources we currently lack, we will be more confident in striving toward our goals.”

In January 2016, in an interview with MobiHealthNews, Jacobs discussed one-to-one marketing channels and how to establish a connection between user experience and sales services.

“Some consumers have mentioned that it is difficult for them to track how many miles their shoes have covered, and wearing shoes for too long without replacement can lead to foot injuries,” Jacobs noted. “Therefore, we have embedded a tracker in our running shoes, which now allows us to monitor the type of footwear users are wearing, the mileage accumulated, and determine when they should replace their shoes with a new pair. For example, if a user’s shoes show 20% external wear, we will recommend that they purchase a new pair. This feature delivers significant value to both consumers and brand manufacturers.”

RunKeeper has previously raised approximately $11.5 million in funding.

The company’s last financing round took place in 2011, raising a total of $10 million. The round was led by Spark Capital, with participation from Steve Case, a partner at AOL, and OTAV, the venture capital arm of O’Reilly Media.

This financing round clearly highlights a prevailing trend in current investment: fitness applications are being acquired or invested in by apparel companies. Approximately one year ago, Under Armour announced the $560 million acquisition of Endomondo and MyFitnessPal, following its earlier $150 million purchase of MapMyFitness. Adidas soon followed suit, acquiring the Austrian fitness app Runtastic for $240 million.

By Chen Kun |

Edited by: Zheng Qi