Is the 'Wellness Craze' to Blame? Why Money is Flowing into Profit-Making Pedometer Apps

Delightroom Makes Strategic Investment in Moneywalk
Cashwalk Also Received 30 Billion Won Investment Last April
Global Expansion Potential and Appeal to a Wide Age Range of Users

As interest in 'wellness (well-being, happiness, fitness)' grows, money is flowing into reward-based platforms. Savings-type pedometer apps are a prime example. Considering that investment funds are drying up across the venture startup market recently, the recent fundraising achievements stand out.

On the 5th, Delightroom announced that it made a 'strategic investment' in Gravity Labs, which operates 'MoneyWalk.' MoneyWalk is a savings-type pedometer app that provides monetary rewards based on users' step counts. Delightroom operates the alarm app 'Alarmi.' The specific investment amount was not disclosed. It was described as a 'strategic investment' not only because it provides funding but also because it helps maximize advertising revenue based on its own know-how.

MoneyWalk was launched in February. As a latecomer in a market flooded with dozens of competing companies, it has achieved notable results. Within three months, it surpassed 200,000 cumulative downloads and exceeded 120,000 MAU (monthly active users). Its monetary rewards are about twice as high as those of other savings-type pedometer apps. Not only MoneyWalk but also Nudge Healthcare, the operator of industry leader CashWalk, secured 30 billion KRW in investment last April. CashWalk’s MAU is 4.13 million.

The reason money is pouring into savings-type pedometer apps is due to the wellness craze and global scalability. Whether in Korea or abroad, the same rewards are given wherever you walk, so there are no significant barriers. This means it is relatively easy to target overseas markets. Korea Investment Partners, Shinhan Capital, and Shinhan Investment Corp., who participated in Nudge Healthcare’s investment, highly valued this point. Another characteristic is that users of various age groups, regardless of gender or age, use multiple app services simultaneously. This creates an environment where growth can be steady without major fluctuations.

In the case of Nudge Healthcare, sales have steadily grown from 32.8 billion KRW in 2020 to 56.9 billion KRW in 2021, and 79 billion KRW last year. Last year’s operating profit was 10 billion KRW. Especially, overseas sales showed remarkable results with a 227% growth compared to the previous year. The newly funded startup Gravity Labs, which has gained momentum from this investment, is also targeting the global market. Kim Un-yeon, CEO of Gravity Labs, said, "The company’s vision is to help 100 million people worldwide develop walking habits," adding, "Collaboration with Delightroom is expected to be a great force in pioneering the global market."