Peloton, a home based cycling startup, is making a killing giving people a reason to workout at home rather than go to the gym.
The company, founded in 2012, offers users a stationary bicycle with attached video featuring spinning classes with professional instructors guiding and encouraging the user through their workout sessions. The video fitness studio is available for a monthly subscription fee.
Peloton is increasingly becoming the answer for people who want to work out in the privacy of their homes. According to the Wall Street Journal, it has more than one million customers, ether who have taken a class or rode on a bike. At a cost of $2,000, Peloton has sold 250,o00 bikes since it launched, which pushed its revenues for 2017 to $300 million.
Peloton’s CEO and co-founder John Foley (Graham Stanton, Hisa Kushi, Tom Cortese and Yony Feng are also founders) told CNBC’s Squawk Box that his company is “weirdly popular.”
“It’s a beautiful business model,” he said. “Our investors are happy.”
The company’s fast growth is starting to overshadow another fitness startup success story, SoulCycle. Re/code reported last December that Peloton now has 4% more customers than the immensely popular fitness studio chain. (a SoulCycle spokesperson disputed the report.)
The New York based startup has two studios, including one located in Manhattan where the video streamed classes are based. It has 37 retail facilities where the specialized equipment can be purchased.
Peloton has attracted the attention and the dollars of investors who have contributed to the growing fitness juggernaut.
Peloton Funding Rounds (Reported)*
- 2012: $400 Seed
- December 2012: $3.9 million Series A
- April 2014: $10.5 million Series B
- April 2015: $30 million Series C
- December 2015: $75 million Series D
- May 2017: $325 million Series E (Peloton was valued at $1.25 billion)
- August 2018: $550 million Series F (Peloton was valued at $4 billion)
With two consecutive funding rounds that lead to a valuation of more than a billion, it’s no surprise that Peloton is now going the initial public offering route. WSJ reported that the company could go public by the end of this year. It was in completion with SoulCycle to go public this year, but SoulCycle pulled its plans to go public, leaving Peloton as the only tech-fitness startup to go public so far.
Video credit: Peloton/You Tube