US-based home fitness service Peloton Interactive raised $550m in a series F round backed by media group Comcast NBCUniversal today that valued it at $4.15bn according to the Wall Street Journal.
The round was led by growth equity firm TCV with a $150m investment, and included financial services and investment group Fidelity, True Ventures, Wellington Management, Kleiner Perkins Caulfield & Byers (KPCB) and Balyasny Asset Management.
Peloton sells specifically built exercise bikes with high-definition touchscreens attached, allowing customers to access live workout videos that are streamed every day, in addition to on-demand fitness classes, in the privacy of their home.
The bikes cost almost $2,000 each and are displayed through a range of brick-and-mortar showrooms while the classes are available through a monthly subscription service.
The funding will support the imminent introduction of a treadmill to the company’s products, and will likely be the last money it raises before launching an initial public offering, co-founder and CEO John Foley and president William Lynch told WSJ.
About $150m of the capital will be allocated to secondary share sales, allowing employees early investors to cash out, and additional proceeds will go to international growth and the expansion of Peloton’s showrooms.
Peloton’s last funding came in a $325m series E round in May 2017 featuring Comcast NBCUniversal that valued it at $1.25bn, and which increased its total funding to about $445m since it was founded in 2012.
The round was co-led by Fidelity Investments, KPCB, Wellington Management and True Ventures and backed by GGV Capital, Balyasny Asset Management and QuestMark Partners.
Other Peloton backers include Grace Beauty Capital, a subsidiary of cosmetics distributor Grace Beauty, which reportedly invested in its $3.5m series A round in 2012, as well as private equity firm L Catterton, which provided $75m for the company in 2015.
– This article was updated on August 3, 2018 to reflect the round’s confirmation by Peloton.