NEW YORK, United States — Global fitness tech company Peloton is headed for an IPO, following a $550m financing round.
The six-year-old brand, now valued at a reported $4.15 billion, has said the new funding will be used to bolster its international expansion, product innovation and retail footprint. According to a statement, the capital will enable the business to continue to innovate aggressively and to expand into more international markets.
Led by TCV, one of the world’s largest technology growth equity firms, the round featured nearly all of Peloton’s existing investors, including Tiger Global, True Ventures and NBCUniversal, with new investors Felix Capital and Winslow Capital also participating. Jay Hoag, Founding General Partner of TCV, who also serves on the board of Netflix and other prominent technology companies, will join Peloton’s Board of Directors.
“We are truly honoured to partner with TCV and with Jay Hoag personally,” said John Foley, Founder and CEO of Peloton. “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.”
The $550M Series F round brings the total equity raised by Peloton to nearly $1B since its inception, and positions Peloton to take full advantage of the growing global trend of instructor-led fitness classes moving into the home.
To leverage this trend, this Autumn the brand plans to launch the Peloton Bike into the UK and Canada – its first new markets outside the US. In addition, it will open at least 20 new retail showrooms in the US, UK and Canada by early 2019, bringing its total number of locations to more than 60 worldwide.
Having also recently introduced a new digital membership that offers over 10,000 live and on-demand, instructor-led classes across several fitness categories, such as cycling, running, walking, bootcamp, strength, stretching and yoga, Peloton is also committed to tapping into a more mainstream market.
“Our goal at Peloton has always been to ultimately offer more than just indoor cycling, and this new digital experience will introduce people to the incredible breadth of fitness content our state-of-the-art broadcast production team and expert instructors create every day,” commented William Lynch, president of Peloton.
“Now, with a Peloton digital subscription, your entire household can take whatever kind of workout they’re interested in, whenever they want, for only $19.49 a month, less than the cost of one boutique fitness class.”
According to Foley, thanks to Peloton’s aggressive growth strategy, it projects $700 million in revenue for the fiscal year ending February 2019. The timing of an initial public offering “remains fluid,” he recently told The Wall Street Journal but 2019 “makes a lot of sense.”