Runtrip Expands into Healthcare with New Funding Round and Initiatives

Introduction

Runtrip Inc., a prominent player in the running app market, has announced its strategic expansion into the healthcare sector. Based in Shibuya, Tokyo, and led by CEO Hideichiro Omori, Runtrip has successfully raised a total of 190 million yen (approximately $1.9 million) from a mix of institutional investors, including PARAMOUNT BED Healthcare Fund and Mitsubishi UFJ Capital.

Funding Background and Goals

In today’s age of increasing life expectancy, the focus on preventive healthcare and well-being has never been more critical. According to the Ministry of Land, Infrastructure, Transport and Tourism, increasing daily steps by just 1,500 could reduce annual medical expenses by around 35,000 yen. Consequently, the absence of regular exercise, such as walking and running, can significantly affect life expectancy.

Since its inception in 2015, Runtrip has built one of Japan’s largest running platforms designed to help runners enjoy their passion more freely and joyfully. The app has reached approximately 4 million users, accounting for about 40% of Japan's running population. With this new funding round, Runtrip aims to shift its focus from solely running to encompass a broader scope of wellness and healthcare, aligning perfectly with its mission of fostering a world where everyone can run freely and joyfully.

The company plans to invest the newly raised capital in expanding its workforce and strengthening its development capabilities to help achieve this mission. They intend to collaborate with PARAMOUNT BED to combine exercise with sleep, developing services and products that promote health.

Furthermore, through the investment from the Yamato Social Impact Fund, Runtrip aims to visualize the social impact generated by its initiatives, specifically how running events foster community building and enhance local attractions. They believe that these positive results can provide a measurable evaluation of the health benefits derived from exercising as a community.

Expansion of Recruitment

As a club-team model startup, Runtrip is keen on broadening its recruitment efforts. The company emphasizes a new organizational structure, categorizing full-time employees as staff who support the team and freelance or part-time professionals as “Pro Players.” This structure aims to leverage diverse skills, ensuring that the overall performance of the Runtrip team flourishes.

With this new funding, Runtrip plans to significantly expand its team, welcoming individuals passionate about improving society through running, regardless of their employment status. This diverse recruitment approach reflects Runtrip's aim to evolve as a startup and enhance its organizational capabilities.

Investors' Insights

Leaders from investor companies have shared their thoughts on why they invested in Runtrip. Hiroshi Yamaguchi from PARAMOUNT BED stated that his company sees a promising synergy with Runtrip, given their shared understanding of the crucial elements of healthy living: sleep, exercise, and diet. He is confident that the collaboration will create substantial health value across various generations.

Similarly, the representatives from the Yamato Social Impact Fund expressed hopes that partnerships like these can rejuvenate local tourism through running events, creating new community opportunities that do not rely solely on physical tourism assets.

Masahito Ohtsujii from Mitsubishi UFJ Capital remarked on Runtrip's innovative approach of associating running with cultural experiences that foster emotional connections among participants. He emphasized their shared goal of generating positive societal impact through community engagement and well-being promotions.

Conclusion

According to CEO Hideichiro Omori, this recent funding signifies a pivotal step towards broadening Runtrip's mission from promoting enjoyable running experiences to addressing pressing health challenges in society. Collaborations with investors like PARAMOUNT BED and the Yamato Social Impact Fund are expected to enhance community engagement and health initiatives, ultimately leading to an empowered society leveraging the fun and joy of exercise.

About Runtrip

Runtrip is a leading startup that operates a comprehensive app for runners, reaching out to 4 million users in Japan through various initiatives, including media, events, and e-commerce. The platform emphasizes a unique “Move to Earn” feature, allowing users to earn rewards for their activities, and maintains an industry-high engagement rate. Moreover, they actively engage in community and well-being projects, contributing to the development of social value centered around running.