AllTrails Raises $150M to Fuel Outdoor Exploration Growth
AllTrails Secures $150 Million Investment for Continued Growth
AllTrails, a leading platform for outdoor enthusiasts including hikers, bikers, and climbers, has announced a new funding round of $150 million. This investment comes from Permira’s growth fund and will be utilized to accelerate the company’s business initiatives.
Pandemic-Driven Surge in Outdoor Recreation
The popularity of AllTrails experienced a significant increase following the onset of the COVID-19 pandemic. As lockdowns and social distancing protocols were implemented, individuals rediscovered their passion for outdoor activities and sought resources like AllTrails to locate suitable trails.
According to CEO Ron Schneidermann, this trend was already developing for several years. He notes that even before the pandemic, a substantial portion of the global population engaged in outdoor recreation, with walking being the most prevalent activity. The inclusion of trail running, mountain biking, camping, and backpacking further amplifies these figures.
User Growth and Engagement
Over the past 18 months, the AllTrails mobile application has seen a surge in downloads, exceeding 40 million. Currently, the platform boasts over 30 million registered users across 190 countries.
Furthermore, AllTrails.com has attracted over 100 million visitors in the last year. The company surpassed 1 million paid subscribers in January, though specific revenue and subscriber details are not regularly disclosed.
Sustained Demand and Future Plans
Despite the easing of COVID-related restrictions, demand for AllTrails remains strong. Schneidermann emphasizes the enduring connection people have developed with the outdoors.
This sustained interest is reflected in increased app usage, higher sign-up rates, greater user-generated content contributions, improved freemium conversion rates, and enhanced subscriber retention.
Interestingly, AllTrails has been profitable since 2017 and did not require additional capital. The new funding is strategically aimed at accelerating existing momentum through product development, team expansion, and international outreach.
Global Expansion and Team Growth
Currently, approximately two-thirds of AllTrails’ user base is located in North America. However, the company is experiencing substantial growth in Europe, Asia, and Latin America.
AllTrails anticipates doubling its headcount for the third consecutive year, with a primary focus on investments in research and development, and product innovation. The company is actively recruiting across various departments, including engineering, design, finance, operations, and product management.
Enhancements to the AllTrails App
The AllTrails app, known for its search, discovery, reviews, and offline maps, is scheduled for significant upgrades in 2022.
While currently functioning as a primarily utilitarian tool, AllTrails recognizes the potential for increased social interaction. Users already contribute valuable information through trail reviews and photos, aiding others with insights regarding trail conditions and suitability.
Focus on Community and Personalization
The new funding will enable AllTrails to invest in product improvements, including features designed to foster a stronger sense of community. These enhancements will be available to both free and paid users.
Schneidermann highlights the company’s intention to improve search and discovery through personalization, enhance on-trail navigation, broaden accessibility by supporting more languages, and create more opportunities for users to connect and share experiences.
Permira’s Role in International Growth
AllTrails believes Permira’s experience with companies like Klarna, Minted, and Zwift, as well as their involvement in the McAfee acquisition, will be instrumental in expanding the platform’s global reach.
“International expansion remains a key priority,” states Schneidermann, “and we are eager to leverage Permira’s global resources.”
Board of Directors Updates
With this transaction, Bruce Chizen, a senior advisor to Permira and former CEO of Adobe, will join Gretchen Howard, COO of Robinhood, on the AllTrails board of directors.
Previously, AllTrails secured $75 million in funding from Spectrum Equity in October 2018.
