Connected exercise bike maker Peloton pulls in $325M in new funding

By Jonah Comstock

Peloton, the New York City-based technology company that has seen impressive success combining exercise bikes with tablets to create virtual cycling classes, has raised an additional $325 million in late stage funding. The investment brings the company's total funding to nearly $445 million and brings its valuation to $1.25 billion, which makes the virtual fitness company officially a "unicorn".

Wellington Management, Fidelity Investments, Kleiner Perkins, and True Ventures led the round, with additional contributions from Comcast NBCUniversal, GGV Capital, Balyasny, and QuestMark. 

“We are changing the way people engage in fitness," founder and CEO John Foley said in a statement. "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."

Peloton offers users a $2,000 exercise bike integrated with a tablet-like screen. Users can hop on the bike and join in live or pre-recorded classes with cycling instructors. During live sessions, realtime social features like leaderboards or video chats with friends keep users immersed in the process. The setup also allows users to track their rides and view combined metrics over time.

While direct-to-consumer is Peloton's primary business, the company also has an enterprise business that kicked off with a partnership that put Peloton bikes in 30 Westin hotels around the country. 

In January, Peloton partnered with Fitbit to allow users to sync ride metrics directly to the Fitbit app, helping them see how cycling fits into their overall fitness goals. Each ride on Peloton is logged as an exercise in the Fitbit app, so all Peloton workouts and Fitbit data will be in one centralized location.

“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,” Jon Callaghan, co-founder of True Ventures, said in a statement. “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.”