Peloton, the indoor cycling bike company, closed a $325 million Series E financing round led by Wellington Management, Fidelity Investments, Kleiner Perkins and True Ventures. Other significant investors in the round included Comcast NBC Universal, GGV Capital, Balyasny, and QuestMark.
“We are changing the way people engage in fitness. 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,” said Peloton Founder and CEO John Foley.
“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,” said Mary Meeker, Partner at Kleiner Perkins.
This news marks the latest milestone for Peloton, who earlier this year was named by Crain’s as the fastest growing company in New York. Over the past year, Peloton nearly tripled its annual revenue, grew its subscriber base over three-fold, and expanded from 14 to 20 showrooms around the country. As a result, investors like True Ventures are even more confident in Peloton’s ability to scale and become the undisputed leader in fitness.
“Since first meeting John Foley in 2012, we’ve been big believers in him and his vision for how Peloton shapes the future of media and fitness,” said Jon Callaghan, co-founder of True Ventures. “Peloton is a cultural phenomenon and has redefined what it means to build a connected experience disrupting multiple industries simultaneously: in home fitness, boutique class fitness and connected media devices. It’s incredibly fun to work with this exceptional team.”
In addition to Peloton’s award winning indoor cycling bike for home use, the company recently introduced a commercial-grade bike that is tailor made for high-traffic environments and equipped with software designed to quickly onboard new users. And in April, Peloton announced an industry-first partnership with Westin Hotels and Resorts, and its commercial bike is already in over 30 Westin properties around the country.
J.P. Morgan served as the sole placement agent for this offering, which contained both primary and secondary funds.
Photo courtesy Peloton
