Outopia, a Chinese sportswear brand, has announced a Series B funding round led by Meridian Capital, Challenjers Capital, Ventech China, and Shunwei Capital. The amount of the investment was not disclosed.

The company will use the funding to boost investments in product innovation and market expansion, “further strengthening its position in the professional outdoor sports sector and injecting new momentum into the development of China’s trail-running and outdoor sports market,” according to local media reports.

Co-founded by two Lululemon alumni, including Aaron Jackson, a sourcing executive, and Hou Xi, Outopia was launched in Shanghai in 2021.

One of the brand’s earliest products was a merino-blend trail-running T-shirt that applied yarn technology previously proven in high-performance footwear. Since then, merino-blend performance apparel has become synonymous with the brand.

Defined by a bright color palette featuring playful graphics and tie-dye treatments, the brand has quickly extended into adjacent lifestyle-driven sports such as skiing and cycling.

Outopia currently counts six core product lines, covering outerwear categories such as base layers, soft shells, and hard shells. Its Vita Shell ultralight shell jacket, priced at 2,111 renminbi, or $305, on its official Tmall store, was recognized by the 2025 ISPO Global Design Awards in its Running and Trail Running category.

In 2021, the company completed a pre-A round of financing, with its valuation surpassing 500 million renminbi, or $72.3 million.

In 2024, the brand opened its first store in Chengdu. In the second half of 2025, Outopia quickly expanded to five new cities, including Shanghai, Beijing, Chongqing, Nanjing, and Hangzhou.

“We see the unique value in the trending social concept ‘first trail run’ and how that has impacted young people. Outopia not only makes gear, but is dedicated to accompanying the user through every trail run. It is precisely this brand appeal — grown out of genuine passion — that Meridian Capital is betting on,” said Wang Weiwei, managing partner at Meridian Capital.

“By establishing professional credibility through products such as those made with merino wool, Outopia has rapidly advanced its offline and overseas expansion. We look forward to helping the company grow from a niche professional circle into a broader lifestyle brand,” Wang added.

Outopia’s latest round of investment reaffirms domestic sportswear brand’s rising influence in the market once dominated by legacy players such as Nike and Adidas.

According to a recent report by Bernstein, while Nike is still clearing excessive inventory, the company is expected to stabilize in China by the second half of this year; smaller competitors, such as Adidas, Lululemon, On Running, Hoka, are “growing rapidly and each gaining shares in China,” according to Bernstein.

Despite a softening consumer backdrop, the sportswear market is expected to grow in the mid-single digits for the next few years, jolted by government-led initiatives that focused on health and wellness. Category growth is looking to outpace apparel, footwear, and overall GDP growth.