Qudong Secures $10 Million in Series A Funding to Pioneer Sports-Oriented Social Networking and O2O Integration

Editor’s Note: In November 2014, Codoon and Qudong, two companies positioned in the sports social networking sector, successively secured multi-million-dollar financing from SIG China. VCBeat also conducted exclusive interviews with these two firms, which are similar yet distinct (see “How Codoon Plans to Build a Sports Social Platform with $40 Million》、《VCBeat Focuses on Sports Social Networking, Staging a "Tale of Two Cities" with Codoon》). Today, author Wang Liyang submitted an article to VCBeat analyzing the O2O model behind fitness socialization. VCBeat has edited and published it as follows:

The vertical social networking market has long vied for dominance in stranger-based social interactions, yet few have innovated in interest-based socializing. It seems that, in the eyes of many, hookups are the primary driving force behind the development of social products, while so-called “interests” are merely topics for pretentious discussions among the artistic youth on Douban. In reality, beyond stranger-based social networking, sports-oriented social platforms built around athletic hobbies also hold substantial market potential.

Stranger-based socializing works; sports-based socializing works even better.

China’s market base is sufficiently large, resulting in a substantial population with ample leisure time, which provides a critical mass of users for stranger social networking. The rise of stranger social networking as a market favorite can be attributed to three key factors: first, the drive of primal instincts, allowing individuals to engage with strangers without bearing responsibility; second, users have sufficient leisure time to cultivate emotional connections with strangers; and third, unfamiliar environments enable individuals to reinvent themselves and seek a sense of belonging within new social groups.

However, stranger-oriented socializing often lacks a clear theme, with interactions between men and women focusing more on seeking emotional comfort before instinctively progressing to the “main event.” If such vertical social platforms lacking a core social focus can succeed, there is no reason why sports-based social networking—built on shared interests, common topics, and similar goals—cannot do the same. It is just that this market is relatively small, has higher barriers to entry, and requires gradual cultivation.

As exercise becomes a social trend, fitness turns into a societal habit, and weight loss emerges as a collective goal, the groundwork for the sports market has matured sufficiently. The remaining challenge lies in how to bring these users together. Sports-based social networking enables fitness enthusiasts to interact as a community, offering greater market potential than standalone exercise-tracking apps.

Late last year, Qudong, a pioneer in exploring China’s sports social networking market, secured $10 million in Series A funding from SIG China. Meanwhile, Codoon, a smart wearable manufacturer bridging hardware and social networking for fitness enthusiasts, completed its $30 million Series B financing round. Overnight, the sports social networking sector entered a period of rapid growth.

VCBeat: First a Sports Community, Then Social Networking for Sports

Building a sports-based social network does not allow for the simple and aggressive acquisition of large numbers of seed users, as is often seen in stranger-social platforms; instead, it requires deliberate, professional cultivation to reach a stage of social growth. Judging from Qudong’s development trajectory, social interaction begins with community building. Qudong initially invited several hundred fitness influencers, professional athletes, and certified trainers to join its platform, thereby establishing a specialized mobile sports community. As these professional users shared content and gradually fostered stickiness among ordinary users, social demands between users were subsequently stimulated.

To maximize user coverage and achieve a critical mass of social users, Qudong offers over 50 sports categories, including running, cycling, yoga, Zheng Duoyan workouts, Insanity, skateboarding, and even diving, thereby meeting the diverse needs of fitness enthusiasts. As a fitness-focused social platform, it encourages many fitness influencers to share their workout achievements. While showcasing themselves, they receive numerous friend requests, gradually building significant influence on Qudong. Subsequently, some of these influencers take the initiative to organize offline “sports events,” such as group running sessions, ball games, cycling meetups, and fitness gatherings.

Additionally, as a sports-themed product, it naturally includes key fitness metrics such as time, distance, and calories burned. QuDong has established data integration partnerships with the well-established fitness app “Codoon,” as well as with internationally renowned fitness applications like RunKeeper and Strava, to better meet the needs of a broader range of fitness enthusiasts.

Social Interaction Is Merely the Vehicle; The Sports Market Holds Immense Potential

It is not difficult to see that the sports market has long been targeted by wearable device manufacturers. In the so-called “sports social networking,” “social” serves merely as the vehicle, while “sports” itself holds greater market potential.

In 2013, the scale of China’s sports industry was approximately $52.6 billion, accounting for about 0.56% of its GDP, whereas in the United States, the sports industry reached $463.9 billion, representing 2.8% of GDP. By comparison, it is evident that China’s sports market, with a population of over 1.3 billion, has substantial room for growth. Moreover, as public enthusiasm for sports continues to rise in recent years, the sports industry market is inevitably poised for significant expansion.

Furthermore, as the internet expands into various traditional sectors, the sports industry is also entering the O2O (Online-to-Offline) era. Compared with other industries, the sports market is relatively unique, encompassing multiple domains such as sports equipment retail, fitness services, event ticketing, smart wearable devices, and live event broadcasting with interactive features. Therefore, it cannot be adequately represented by a pure B2C or O2O model. To capture a larger share of the sports consumption market, leveraging social mechanisms to aggregate users holds greater potential.

It is inherently difficult to monetize fitness-based social networking through traditional online social models such as gaming or membership subscriptions. This is because the user base is not exceptionally large, users do not derive a sense of identity or recognition from membership status, and an excessive focus on gaming would detract from attention to fitness. Therefore, the core of fitness social networking lies in community building, while monetization strategies should focus on developing the online-to-offline (O2O) fitness market.

This is indeed the case, and this is precisely how Qudong operates. Currently, Qudong collaborates with multiple chain gyms to provide “personal fitness coaching” services for sports enthusiasts at various levels. Meanwhile, it has established soft or hard advertising partnerships with brands and manufacturers in sectors such as sports-related products, services, events, activities, and functional beverages. Recently, the company has been expanding into the business of sports venue reservations.

In the O2O era, capturing users equates to securing wealth. Within the realm of sports-based social networking, every niche segment—from sporting goods retail and smart wearable devices, to news media marketing, live event broadcasting and interaction, branded product placement, offline themed events, sports venue reservations, and extended gym services—harbors substantial market value.

The sports market is sufficiently large, and the integration of the internet with the sports industry can create greater revenue potential. VCBeat’s multi-million-dollar financing round has merely opened the door to the sports social networking market; the underlying sports O2O market remains in its nascent stage, presenting numerous opportunities.

This article was submitted to VCBeat by the author, Wang Liyang. You are welcome to follow the author’s WeChat official account: “Tech Talk or Bust.”