Peloton Interactive Inc., a startup that makes web-connected home-fitness equipment and content, raised $550 million in a funding round led by venture capital firm TCV.
The investment values Peloton at $4.15 billion and includes backing from Kleiner Perkins Caufield & Byers, Tiger Global Management and GGV Capital. The company said the financing will be its last before pursuing an initial public offering as soon as next year.
Peloton will use the money to expand internationally, bring a treadmill to market and establish itself as the premier source of fitness-related content. The company will open in Canada and launch five retail locations in the U.K. this fall, its first moves beyond the U.S.
“We plan to be very aggressive globally,” said John Foley, a co-founder and Peloton’s chief executive officer.
The Wall Street Journal reported the funding earlier.
Peloton got its name selling a $1,995 stationary bike that beams to the internet and plays thousands of live and pre-recorded fitness classes on an attached screen. Members pay $39 per month to participate in the company’s virtual spin classes or stream videos from Peloton’s bevy of personal trainers. The company also sells t-shirts, yoga pants and spin paraphernalia online and in retail locations across the country.
Peloton is profitable, Foley said. By February, the New York-based upstart is expected to generate about $700 million in revenue from subscriptions, equipment and retail sales. Foley said he expects Peloton will lose money in the second half of this year as the company brings its new treadmill to market.