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Spinning has turned out to be a big business, and there’s one brand that’s been gaining traction in the at-home fitness space. Peloton’s $2,000 bikes have developed a cult following, mainly because of its live-streamed classes, which are offered as an added subscription and can be displayed on the bike screen.
The price of the machines may seem steep, but investors are betting that this is a billion-dollar company. Wellington Management, Fidelity Investments, Kleiner Perkins and True Ventures led a $325 million Series E financing round, valuing the company at $1.25 billion. Other investors include GGV Capital and Comcast NBCUniversal.
“We are changing the way people engage in fitness,” said Peloton founder and CEO John Foley, in a statement. “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.”
Noted Kleiner Perkins investor Mary Meeker was also quoted in the release about why she’s investing in the company. “Peloton is supporting especially broad subscriber engagement and growth. We believe Peloton is the leader in a new business that has significant potential, physical interactive media.”
I’ve taken a couple of Peloton classes at their New York studio and liked them. The high-energy instructors and the detailed metrics on the Peloton bikes were enough motivation for a productive workout.