- General
- August 3, 2018
- 5 minutes read
Peloton Interactive gets $550 million funding at a $4.15 Billion valuation
Peloton Interactive exercise bike maker Peloton has now raised another financing round this time totalling $550 million in Series…
Peloton
Interactive exercise bike maker Peloton has now raised another financing round this time totalling $550 million in Series F funding led by Technology Crossover Ventures with participation from Tiger Global Management and other investors valuing 6 year old Peloton at about $4.15 Billion and boosting the total amount raised by the New York headquartered startup to just a little under $1 Billion.
According to The Wall Street Journal‘s report, This financing round as stated by its co-founder and CEO John Foley along with its Chairman William Lynch is expected to be the last before an IPO for Peloton which notably last raised $325 million in a previous round valuing the Interactive exercise bike maker at $1.25 Billion with the round getting participation from various notable names including Fidelity, NBC, KPCB, Wellington Management, True Ventures and several others.
Also notable about this round is that $150 million out of the total investment is going towards the purchase of shares from already existing investors and employees giving them options for good liquidity as Peloton earmarks the rest for several initiatives which include international and retail expansion.
Peloton
Peloton is renowned for its $1,995 stationary bike which offers a widely used $39 a month streaming service bringing live classes from its own instructors to its user, This feature has seen very good usage and adoption by customers to make the company dubbed the “Netflix of fitness” by many boosting its sales to an expected $700 million by the end of fiscal year ending February 2019.
With its bike becoming a major fitness craze across its markets, Peloton has seen adoption and use of its bikes by notable celebrities including soccer superstar David Beckham, Leonardo DiCaprio, Hugh Jackman and several others.
Peloton
The company plans to launch a treadmill which was demoed at this year’s Consumer Electronics Show sometime this mall adding to its interactive exercise ecosystem providing more services for customers which include opening more showrooms and making its live streaming service available for users of other fitness equipment.
This will do a very good job in expanding Peloton’s already large user base as it cements its position as a global leader in the fitness technology space.
