Peloton said Thursday that it has secured $10.5 million in Series B funding. Tiger Global led the round. Headquartered in New York City, Peloton is a provider of at-home fitness solutions for live and on-demand indoor cycling classes.
New York, NY (April 24, 2014): Peloton, the only at-home fitness solution for live and on-demand indoor cycling classes, today announced the close of $10.5 million of Series B funding led by Tiger Global Management. The company also announced the opening of its 8,000-square-foot flagship location in New York City, which houses a full film production studio from which live cycling classes will be streamed to Peloton owners around the globe.
“We are pleased to welcome Tiger Global as an investment partner,” said John Foley, Founder and CEO of Peloton. “This funding will help us pursue the opportunity to build real scale through the distributed technology platform we have already developed.”
This new round of financing brings the total amount raised by Peloton to $14.4 million. Previous backers include experienced and well-known individuals from a variety of industries including: Greg Blatt (CEO, IAC); Jon Callahan (Founder, True Ventures); Howard Draft (Executive Chairman, FCB); Dave B. Heller (Former Goldman Sachs Securities Division co-head); Dara Khosrowshahi (CEO, Expedia); Amar Lalvani (CEO, The Standard Hotels); John Pleasants (Former Co-President, Disney Interactive); and Mike Novogratz (Founder, Fortress Investment Group).
“The indoor fitness equipment market has lacked real innovation over the past several decades,” said Lee Fixel, Partner at Tiger Global Management. “We believe Peloton is disrupting the traditional at-home fitness market with its unique subscription business model and a best-in-class consumer product.”
Peloton will use the new funds to increase production and reduce wait times for its over-sold in-home Peloton bikes and to open its state-of-the-art, indoor cycling studio in New York’s Chelsea neighborhood at 140 West 23rd Street. The 8,000-square-foot location boasts a fully functioning production studio by Walters-Storyk Design Group for the live-filming and distribution of indoor cycling classes to Peloton owners worldwide. The 60-bike cycling studio will offer up to 12 classes a day led by world-class instructors, including Peloton co-founder and indoor cycling pioneer Marion Roaman.
In addition to the core cycling studio and online streaming operation, Peloton Chelsea offers a 2,000-square-foot lounge featuring Jack’s Stir Brew coffee, juices, and Aquaçai water, among other amenities. The space includes sumptuous men’s and women’s locker rooms each replete with spa-quality ambience and a complete selection of luxury bath products. The flagship retail experience will afford the opportunity to purchase Peloton bikes for the home and will also feature Peloton’s own line of custom-made active wear.
“Our flagship location is like nothing else in the world,” said Marion Roaman, co-founder of Peloton. “It incorporates a best-in-class cycling studio, a live television streaming facility, an ‘unparalleled in fitness’ lounge space, and a first-of-its-kind retail space that marries the best fitness equipment with high-fashion fitness apparel. It is truly something to experience.”
With headquarters in New York City, Peloton has opened retail locations throughout the Tri-state area including Garden State Plaza and Short Hills Mall in New Jersey, and The Westchester Mall in White Plains, New York. The company has additional plans to open stores in East Hampton, Chicago, Los Angeles and other cities around the country in the coming months.
Prior to Tiger Global, Peloton had raised money from 102 angel investors. Additional investors in the Series B and earlier rounds include: Dave Alberga (Former Chairman/CEO, Active Network); Chris Barkley (President, FreshSpace Media); Dave Barry (President, Ironstate Development); Eric Baughman (CEO, Cytozyme Labs); Rob Bernshteyn (CEO, Coupa); Wade Davis (CFO, Viacom); Dez Desai (Director, Blackrock); Mike Duda (Founder, Consigliere); Chris Engel (President, Forefront Capital); Marcelo Gigliani (Partner, Apax Partners); Dan Gilbert (SVP and GM of Flextronics); Brent Handler (Founder and CEO, Inspirato); Jed Katz (MD, JavelinVP); George Maloof (Chairman, Palms Hotel and Casino); Omar Mangalji (Founder, Cap-Meridian Ventures); Fred Mayerson (Chairman, The Walnut Group and Maywic); Mark Miller (Owner, Mark Miller Toyota); Michael Rubin (Founder, GSI Commerce); Larry Silver (MD, Silver Young Capital); Ted Virtue (CEO, MidOcean Partners); Brandon Warburton, (VP of Marketing, Backcountry.com); Ronnie Wexler (MD, Goldman Sachs); Dave Whorton (Founder, Tugboat Ventures); Arthur Wrubel (Founder, Wesley Capital); and, Eric Zinterhofer (Co-founder, Searchlight Capital).
Founded in 2012, Peloton has transformed the at-home fitness experience by creating a bike that merges high-design with modern technology to provide access to live streaming and on demand classes by top instructors. In the spring of 2014, Peloton opened a flagship studio in Chelsea to offer riders the opportunity to experience their favorite classes in-person. With a state of the art studio, the best instructors and content distribution, Peloton delivers an efficiently intense workout that motivates, while positively changing the mind and body. Current retail locations include: Garden State Plaza and Short Hills Mall in New Jersey, The Westchester Mall in White Plains, New York. For more information, visit: http://www.pelotoncycle.com
About Tiger Global Management
Tiger Global is a fundamentally oriented, global investment firm. The Firm deploys capital in private equity partnerships and public equity funds. Tiger Global’s private equity partnerships have ten-year investment horizons and invest in growth companies in the global Internet and technology sectors. Tiger Global’s private investments have included SurveyMonkey, Warby Parker, Yandex, Facebook, Linkedin, Jingdong, Despegar, Mail.ru Group, Ctrip, Flipkart, Makemytrip, Justdial, Netshoes, MercadoLibre, OnDeck, and Eventbrite. The Firm’s public equity funds focus on long-term trends in the technology, telecom, media, retail and consumer sectors. Tiger Global was founded in 2001 and is based in New York.