AAA Peloton tones up with $325m

Peloton tones up with $325m

US-based fitness company Peloton completed a $325m series E round yesterday that included mass media group Comcast NBCUniversal.

Wellington Management, Fidelity Investments, Kleiner Perkins Caulfield & Byers and True Ventures co-led the round, which included GGV Capital, Balyasny Asset Management and QuestMark Partners.

Founded in 2012, Peloton operates a home fitness offering that combines its custom made exercise bike with an app-based subscription service that provides video access to live classes and performance tracking metrics.

The company, which signed a countrywide supply agreement with Westin Hotels and Resorts last month, said in a statement that it has almost tripled its revenue and more than tripled its subscriber base in the past year while growing its number of live showrooms from 14 to 20.

Peloton did not disclose a valuation for the round but two people familiar with its fundraising told Bloomberg in March this year the company was seeking at least $120m in a round that would value it at $1.2bn.

John Foley, founder and chief executive of Peloton, said: “This financing will allow us to expand our product and content offerings, open new showrooms across the country, and continue to innovate the experience we offer our members at every touchpoint.”

The round took Peloton’s overall funding to about $445m, and comes after $30m of funding from Tiger Global Management and True Ventures in April 2015 and a $75m investment by private equity firm L Catterton in December the same year.

Grace Beauty Capital, the corporate venturing arm of lifestyle products distributor Grace Beauty, is also an investor, having reportedly contributed to Peloton’s $3.5m series A round in 2012.

– Image courtesy of Peloton Interactive, Inc.

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