By Jen Booton / August 3, 2018
Peloton plans to rapidly expand abroad and build a Netflix for fitness streaming. (Courtesy of Peloton Cycle)
Peloton, the at-home indoor cycling company, has raised $550 million in a new funding round that values the company right around $4 billion.
The late-stage, Series F funding round, led by the venture capital firm TCV, comes as the maker of video-streaming stationary bikes plans for an initial public offering, according to The Wall Street Journal, and looks to build a Netflix-like service for fitness streaming.
Peloton has raised nearly $1 billion in total over the past few years, according to Crunchbase, fueling massive expansion plans that have made the brand a household name. This most recent round included many of its existing institutional investors, such as Tiger Global, True Ventures, Wellington Management, Fidelity, NBCUniversal, Kleiner Perkins, and Balyasny. New investors in the Series F include Felix Capital and Winslow Capital.
Jay Hoah, founding general partner of TCV who also serves on the boards of Netflix, Electronic Arts, and Zillow, will join the Peloton board of directors. He’ll serve alongside TCV Venture Partner Erik Blachford, who has been on the board since 2015.
“We are truly honored to partner with TCV and with Jay Hoag personally,” said Peloton’s founding chief executive, John Foley, in a statement. “TCV’s reputation, experience, and involvement in businesses like Netflix, Spotify and Facebook will be invaluable as we build Peloton into one of the most unique and influential global consumer product and media companies of our day.”
Peloton plans to use the money to bolster its international expansion and retail footprint, as well as to power product innovation as the company looks to “take full advantage of the growing global trend of instructor-led fitness classes moving into the home.”
This fall, the Peloton Bike will launch in the U.K. and Canada, marking the brand’s first new markets outside the U.S. The company plans to open at least 20 new retail showrooms in those two countries and the U.S. by early 2019, bringing its total number of locations to more than 60. It will also open a 25,000-plus square foot campus in Plano, Texas, which will house a support hub for members, and a 35,000 square foot studio complex in Manhattan that will house its broadcast and production operations for group fitness classes streamed live around the world.
The company is also launching its second product, Peloton Tread. The new device is a total body fitness treadmill that will come with “hundreds” of running, walking, bootcamp, and strength classes.
Peloton is the new(ish) kid on the at-home fitness block and it has the financial backing and team in place to become a global powerhouse in the fitness world. The company, which is competing with brands such as NordicTrack, told CNBC this morning that it is going to continue to invest in livestreaming capabilities and hopes to one day become a Netflix for fitness streaming. That means that the company might eventually offer fitness classes available on tablets and smartphones for those who don’t have a Peloton bike or treadmill.