A fitness app that rewards people who are physically active has secured financial backing of US$5.7m (£4.1m, €4.7m) to help boost its presence globally.

Sweatcoin has received “seed funding” from Silicon Valley and European investors to help grow its next-generation health and fitness app, which uses a smartphone’s GPS and onboard accelerometer to track movement.

The free app pays people who are physically active through sweatcoins and converts individuals’ outdoor steps into currency that can be used to buy gadgets, sports and fitness gear, services and experiences from more than 300 retailers and lifestyle brands, including Boohoo.com, Graze, and Hellofresh.

The funding comes after Sweatcoin hit number one on the US App Store, acquiring more than 5 million registered users in less than a year. Since its release in 2016 in the UK, US and Ireland, the app has succeeded in making its user base 9-20 per cent more active, leading people towards healthier and more productive lifestyles.

“We are thrilled that our mission to create an entire Movement Economy powered by people’s physical activity has been embraced by users and visionaries alike,” said Anton Derlyatka, Sweatcoin co-founder.

“We have a very bold plan to take the concept of fitness into the future which even includes the ability to pay taxes with sweatcoin. This funding round will allow us to build out the product and technology team in order to scale even faster so that we can help millions of people all over the world attain better health.”

Derlyatka said the company would use the cash to focus on delivering a great user experience for people all over the world as it looks to refine its “step-verification algorithm”.

Oleg Fomenko, co-founder of Sweatcoin, said: “We are out to fundamentally change the value ascribed to health and fitness and provide the motivation for people to lead better lives.”

The funding was led by venture capitalists Goodwater Capital.

Chi-Hua Chien, managing partner of Goodwater and Sweatcoin board member, said: “Turning movement into real-world value for millions of people is the lever that is required to change behaviour.”

Fomenko was profiled in Health Club Management in 2016. To read the article,

click here.