Wellness rewards platform KrowdFit raises $3.8M – GeekWire
KrowdFit is raising more cash for its wellness rewards platform that offers people money in exchange for practicing healthy habits.
The Bend, Ore. startup just reeled in an additional $3.8 million from existing investors, KrowdFit CEO Jim Miller told GeekWire. The money will be used to grow its product development team and partner integrations.
KrowdFit launched in 2010 after Miller, a longtime entrepreneur who previously ran a Visa rewards program for his former startup uTANGO, saw an opportunity to create a service that rewarded users with cash for being healthy.
The company’s platform engages users by having them log their exercise, step, eating, and sleep activity throughout the day with a wearable tracker. Each time an activity is recorded, users earn entries to various cash giveaways that are mostly funded by monthly membership fees, in addition to KrowdFit’s own contributions. The weekly, monthly, and quarterly cash prizes range from $125 to $5,000 and are rewarded at random.
KrowdFit makes most of its revenue from corporate clients, though it does work with individual buyers who pay $12.99 per month. Miller said the company has seen “significant” growth in new corporate accounts, up 250 percent from last year. KrowdFit also offers a “budget neutral” employee wellness program for spending-constrained clients.
There are plenty of other startups that have created wellness reward and incentive platforms — Limeade and EveryMove (acquired in March) are two from the Seattle area — but KrowdFit differentiates itself with the crowdfunded reward system.
KrowdFit employs less than 10 people but plans to grow its team as a result of the new funding.